Monday's trade was calm and simple, giving the livestock markets an opportunity to rally modestly without blasting the complex with anything overly drastic. As the markets head into Tuesday, strength remains a strong tone throughout the lean hog and cash cattle markets. Hog prices closed higher on the National Direct Afternoon Hog Report, up $1.16 with a weighted average of $64.48 on 7,101 head. December corn is down 1/4 cent per bushel and December soybean meal is down $5.90. The Dow Jones Industrial Average is up 465.83 points and NASDAQ is up 257.46 points.
LIVE CATTLE:
Feedlots have been seeing the reward of pricing cattle and selling them later in the week, which helps achieve a stronger cash market and regain some leverage throughout the marketplace. The board's stronger close was well received as feedlots look to price cattle higher again this week. October live cattle closed $0.65 higher at $108.82, December live cattle closed $0.65 higher at $111.75 and February live cattle closed $0.50 higher at $115.22. Monday's cash cattle trade was at a mere standstill as feedlots patiently wait to play their cards later in the week. Monday's slaughter is estimated at 119,000 head, 1,000 head more than a week and year ago.
Boxed beef prices closed mixed: choice down $1.90 ($216.98) and select up $0.40 ($208.01) with a movement of 132 loads (65.20 loads of choice, 25.06 loads of select, 7.39 loads of trim and 34.71 loads of ground beef).
TUESDAY'S CASH CATTLE CALL: $1.00 to $2.00 higher. It's unlikely that cattle will trade as early as Tuesday, but when they do its likely that stronger prices will be seen again.
FEEDER CATTLE:
Nearby feeder cattle contracts closed slightly higher while deferred contracts closed $0.65 to $0.85 higher. Although nearby contracts closed higher, there's plenty of uncertainty keeping the market close to teetering lower as corn prices closed mixed and there's concerns about how much support this year's upcoming fall run will have. October feeders closed $0.15 higher at $140.05, November feeder closed $0.05 higher at $139.92 and January feeders closed $0.12 higher at $138.12. At Joplin Regional Stockyards in Carthage, Missouri, compared to a week ago, steer calves sold steady to $4.00 higher while yearlings sold unevenly steady. Heifers regressed and traded mostly $5.00 lower with some lightweight heifers selling as much as $9.00 lower. The CME feeder cattle index for Oct. 2: down $0.22, $142.74.
LEAN HOGS:
The lean hog market closed modestly higher but saw the market's biggest supporting indicators from the cash market and cutout value. October lean hogs closed $0.25 higher at $74.75, December lean hogs closed $0.15 higher at $62.65 and February lean hogs closed $0.50 higher at $68.17. Even though the market's been disappointed in not seeing a big spike in export demand, the domestic pork demand has been stellar. Pork cutouts total 285.80 loads with 264.67 loads of pork cuts and 21.12 loads of trim. Pork cutout values: up $2.85, $95.00. Monday's slaughter is estimated at 489,000 head, steady with a week ago and 4,000 head more than a year ago. The CME lean hog index for Oct. 3: up $0.07, $76.81.
TUESDAY'S CASH HOG CALL: Slightly higher. With support stemming from all sectors, higher futures market, strong cutout close and renewed interest from packers, Tuesday's market has a strong possibility of trading higher again.
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