Ya can't win for losin' livestock contracts. Headed south seems to be the theme Wednesday morning as all livestock contracts are lower and continue to trade lower as the morning progresses. December corn is down 1/4 cent per bushel and December soybean meal is down $1.80. The Dow Jones Industrial Average is down 40.29 points and NASDAQ is down 40.74 points
LIVE CATTLE
Live cattle contracts etch lower and lower with deferred contracts taking the biggest hit. December live cattle are down $0.82 at $118.62, February live cattle are down $0.50 at $124.17 and April live cattle are down $0.60 at $125.20. Trading lower than Tuesday's close it makes one wonder if the correction we have been talking about has arrived. Regardless if it has, or if the week will turn around to close steady to higher compared to last week - it would be a shock to see cash cattle trade anything but steady to higher. Given that packers are still making plenty of money on the retail side of things, they have every incentive they could possibly need to keep processing cattle rapidly.
The countryside has been quiet Wednesday morning. Asking prices of $117 are circulating the South and $185-plus in the North. The Fed Cattle Exchange Auction reported a total of 547 head, with one lot in Texas, three lots in Nebraska, and two lots in Kansas. Asking prices were at $113 and $117. Two lots were noted as sold, but the sellers passed on these offers (Texas lot at $114, and Kansas lot at $113).
Midday boxed beef prices are higher: choice up $0.68 ($236.73) and select up $1.52 ($211.34) with a movement of 54 loads (30.97 loads of choice, 10.79 loads of select, zero loads of trim and 12.61 loads of ground beef).
FEEDER CATTLE
Live cattle contracts slip lower, but feeder cattle contracts slip even lower than the live cattle prices. November feeder cattle are down $1.12 at $146.72, January feeder cattle are down $1.57 at $144.20 and March feeder cattle are down $1.62 at $143.57. A snow storm that has moved across some of the Northern country could put a damper on some of the sale barns this week. Feeder cattle prices are largely reciprocating the negative energy from the rest of the complex.
LEAN HOGS
Oh, of course after a strong close Tuesday, headlines sharing that Chinese President Xi Jinping thinks next week's trip to Brazil may come too soon for him to be able to sign the Phase One trade deal with the United States. Lean hog contracts have since given up all of what Tuesday gained and continue to trade lower. December lean hogs are down $2.57 at $64.70, February lean hogs are down $1.20 at $72.55 and April lean hogs are down $1.12 at $78.85.
The two-day lean hog index for 11/04/19 is down $0.52 at $60.36, and the actual lean hog index for 11/01/19 is down $1.22 at $60.88. Hog prices are down on the National Direct Morning Hog Report, down $0.18 with a weighted average of $46.63, ranging from $43.00 to $47.34 on 8,424 hogs sold and a five-day rolling average of $48.58. Pork cutouts totaled 186.90 loads with 165.84 loads of pork cuts and 21.06 loads of trim. Pork cutout values are lower, down $1.08 at $78.42.
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