Mondays are generally a crowd for the livestock complex, and to be honest, Tuesday isn't much better. Live cattle contracts are still energized from last week's close and show modest support throughout most of the live cattle contracts. Feeder cattle and lean hog markets aren't so convinced that Monday needs to amount to anything, and the end of daylight saving time makes the day that much harder. December corn is down 4 cents per bushel, and December soybean meal is down $1.50. The Dow Jones Industrial Average is up 99.36 points and the NASDAQ is up 42.76 points.
LIVE CATTLE
Live cattle is the only marketplace projecting higher prices at the top of the hour. Futures are ranging from steady to gains of $0.75. Given that last week ended on a positive note for all parties, packers are making money on exceptional boxed beef prices and feeders are rallying the cash market and even turned down late-week bids. This week's cash cattle market could have the potential to be even better.
Formula totals for last week were mixed, higher in Texas, and lower in Kansas and Nebraska: Kansas 72,799 (down 6,222), Nebraska 54,767 (down 4,720), Texas 99,697 (up 1,376). Total trade volume was lower in all three major feeding states: Kansas 83,842 (down 13,930), Nebraska 83,201 (down 1,933), Texas 104,913 (down 2,225).
Midday boxed beef prices are higher: choice up $1.14 ($234.34) and select up $2.32 ($209.83) with a movement of 39 loads (22.13 loads of choice, 8.46 loads of select, 4.45 loads of trim and 3.59 loads of ground beef). Last week's slaughter totaled 655,000 head -- 15,000 more than the previous week and 2,000 more than the same week a year ago. Given that boxed beef prices continue to steadily trend upward, slaughter should continue to press on vigorously.
FEEDER CATTLE
Feeder cattle prices are waiting for the live cattle market to test the waters before they commit to higher or lower moves. Trading softly around both sides of steady, the feeder cattle market will most likely see an uneventful session and close steady at best. November feeder cattle are steady at $149.12, January feeders are down $0.20 at $145.80 and March feeders are down $0.05 at $145.07.
LEAN HOGS
The lean hog market is taking a cut at deferred contracts, which range from $0.65 to $1.07 lower. It's a tough game to be in right now with too many hogs available, packers able to push the cash market lower and hogs gaining more weight. For the week ended Oct. 26, hogs gained 1 pound over the prior week and are up 3 pounds compared to last week. Given the sheer number of hogs around and available, 3 pounds is a significant figure.
The projected lean hog index for 11/01/19 is down $1.22 at $60.88, and the actual for 10/31/19 came to $62.10, down $0.65. Prices are lower on the National Direct Morning Hog Report, down $1.18 with a weighted average of $47.30, ranging from $44.00 to $50.00 on 7,920 hogs sold and a five-day rolling average of $49.87. Pork cutouts totaled 125.68 loads with 104.79 loads of pork cuts and 20.89 loads of trim. Pork cutout prices are up $1.93 at $75.64.
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