GENERAL COMMENTS:
Live cattle contracts plunged lower right after the noon hour but were able to rebound and close higher than the day's initial open. Feeder cattle markets are mostly higher and the lean hog sector closed mixed. Hog prices are lower on the National Direct Afternoon Hog Report, down $0.40 with a weighted average of $58.82. December corn is down 1 1/2 cents per bushel and December soybean meal is down $3.00. The Dow Jones Industrial Average is down 15.59 points and NASDAQ is down 23.17 points.
LIVE CATTLE:
A successful close for the live cattle contracts on Wednesday. December live cattle closed $0.42 higher to end the at $113.87. Overall all contracts mustered up the same support and strength and closed anywhere from $0.07 to $1.35 higher. The biggest gain was seen in the spot October live cattle market, closing at $112.35 up $1.35. Closing boxed beef prices are mixed: choice up $0.26 ($218.28) and select down $0.11 ($191.37) and a total boxed beef movement of 154 loads (60.04 loads of choice, 43.29 loads of select, 20.77 loads of trim and 30.35 loads of ground beef). Packers are starting to make calls, but no substantial business has taken place yet.
THURSDAY'S CASH CATTLE CALL: $1 higher. The days are aligning for another week of strong cash cattle trade. Boxed beef prices been good, boxed beef movement has been strong and the board is closing another day stronger.
FEEDER CATTLE:
Wednesday's feeder cattle market ping-ponged around but closed higher than the day's initial open. October feeder cattle closed $0.22 higher at $145.22 and November feeder cattle closed down $0.15 at $145.92. Other than the nearby November contract, all contracts closed higher, securing $0.20 to $0.37 gains for the day. On an estimated run of 6,761 head (up 1,967 head from the previous week) Philip Livestock Auction sold feeder steers 500 pounds to 650 pounds $4.00 to $6.00 higher and 650- to 750-pound feeder steers $2.00 to $4.00 higher. Feeder heifers weighing 500 pounds to 650 pounds sold for $4.00 to $5.00 higher and 650- to 750-pound feeder heifers sold $2.00 to $3.00 higher. Calves were sought after with very good demand, there were lots of new buyers and many buyers looking for load lots. CME feeder cattle index for 10/15/19: $145.12 up $0.03.
LEAN HOGS:
Though Wednesday's close showed mixed markets -- some higher and some lower -- the simple fact that the market was able to sustain and keep at least half of Tuesday's rally is positive. Nearby markets closed lowe, and most deferred markets closed higher, except for the really extended months of October 2020, December 2020 and February 2021. Wednesday's close falls hand in hand with the same uncertainly that the market has seen over the last week. Begging for clear answers as to where export opportunities are, the lean hog sector closed mixed again. Pork cutouts totaled 339.96 loads with 280.39 loads of pork cuts and 59.57 loads of trim. Pork cutout values: down $0.34 at $77.72. CME lean hog index 10/14/19: $69.92 up $0.81.
THURSDAY'S CASH HOG CALL: $1 lower. With most of the market's focus closing Wednesday on the cattle sector, unless a pivotal trade announcement surfaces, the market will probably take the back burner until transparent opportunities are presented with China or other markets.
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