GENERAL COMMENTS:
Wednesday closed strong in all livestock contracts. A lot of pressure lies on Thursday and Friday as Chinese officials plan to begin their meetings Thursday, and if the board can't keep its recent gains, it could have a negative rippling effect on both the board and cash markets. Hog prices are up $1.65 on the National Direct Wednesday Afternoon Hog Report, with a weighted average of $53.90. December corn is down 1 1/2 cents per bushel and December soybean meal is up $2.80. The Dow Jones Industrial Average is up 181.97 points and NASDAQ is up 79.96 points.
LIVE CATTLE:
Live cattle closed higher Wednesday, closing anywhere from 30 cents to 75 cents higher. December live cattle closed at $111.17, posting outside gains and putting pressure on the rest of the week to either continue the rally or the market could potentially give way to a toppy chart and lose a lot of the market position gained recently. Cash cattle is still letting time pass by and letting the market establish all that it intends to on the board before trade gets under way. Bids of $105 have been placed in Texas and Kansas, which are a lot softer than asking prices of $110 in the South and $175 to $178 in the North. On this day a year ago, the board closed live cattle contracts at $113.35. Wednesday afternoon boxed beef prices are mixed: choice up $1.00 ($214.60) and select down $0.94 ($186.12) with a big offering of movement totaling 171 loads (65.22 loads of choice cuts, 58.55 loads of select cuts, 24.71 loads of trim and 22.49 loads of ground beef).
THURSDAY'S CASH CATTLE CALL: $1 higher. The board's ability to persuade positive or negative psychology into the countryside will be tested this week. If the board can keep outside gains, $1 higher should be easy. If the board weakens in its position, $1 higher is still possible but it will be more work for feedlots.
FEEDER CATTLE:
It's been quite some time since we have gotten to see so much action out of the feed cattle contracts. Some experts claim that its best to take calves to town when sale barns are at near peak capacity so that buyers are incentivized to come to the sale and able to full their loads. Others argue that with simple supply and demand concepts the market gets flooded and the sheer number of calves available kills the need to work too hard at getting them bought. Sale barns are light this week as many anticipate the upcoming storm and know that trucks won't want to be out on the road. CME feeder cattle index 10/08/19: $144.47, up $0.06.
LEAN HOGS:
Closing the day outside the rest of the week's trade, Thursday and Friday will be a tell-tale and a key indication as to where things are going in the near future. A lot of pressure lies on the lean hog contracts as Chinese officials have officially landed in Washington D.C. and trade talk will start Thursday. Pork cutouts: down $1.44 at $76.01. CME lean hog index 10/07/19: $59.59, up $0.37.
THURSDAY'S CASH HOG CALL: $1 higher. Knowing that China sent more trade officials over than initially planned leads one to believe that trade conversation has the potential to be good Thursday. If everything goes as planned and the U.S. can start exporting to China soon, prices should reciprocate the same energy. If trade deals either commence or are delayed again, the growing numbers within the hog market are going to make it tough for cash prices to rally much at all.
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