Monday's livestock contracts didn't find much support on Columbus Day. Hog prices closed lower on the National Direct Afternoon Hog Report, down $0.60 with a weighted average of $63.99 on 5,892 head. December corn is down 6 cents per bushel and December soybean meal is down $9.40. The Dow Jones Industrial Average is up 250.62 points and NASDAQ is up 296.32 points.
LIVE CATTLE:
Live cattle contracts took the brunt of Monday's blow as nearby contracts closed with losses steeper than $1.00. October live cattle closed $1.52 loads at $108.35, December live cattle closed $1.77 lower at $110.82 and February live cattle closed $1.22 lower at $113.07. It was positive to see boxes close higher for the day following last week's weaker trend. Usually boxed beef prices start to see an uptick in value throughout October. Monday's cash cattle trade was quiet (as excepted, but there were some bids of $107 live and $169 dressed offered in Iowa. This week's cash cattle trade isn't expected until later in the week unless feeders get anxious and sell out earlier in the week. Monday's slaughter is estimated at 117,000 head, 1,000 head more than a week ago and 2,000 head more than a year ago.
Boxed beef prices closed higher: choice up $0.56 ($214.62) and select up $0.52 ($200.34) with a movement of 127 loads (76.08 loads of choice, 22.97 loads of select, 11.99 loads of trim and 15.74 loads of ground beef).
TUESDAY'S CASH CATTLE CALL: $1.00 to $2.00 higher. If the board cooperates, the cash cattle market still has room to gain some more leverage. Feedlots have seen the benefit in waiting out the week's early trade and stalling until Thursday or Friday for higher prices.
FEEDER CATTLE:
Feeder cattle contracts fared much better throughout the day than the live cattle contracts, but still closed mostly lower. October feeders closed $0.95 lower at $137.30, November feeders closed $0.02 higher at $135.55 and January feeders closed $0.35 lower at $133.65. Looking toward Tuesday, the market is going to be cautiously watching the corn complex to see how prices trend this week, all while receiving large supplies of calves to sell throughout the countryside. The fall run usually gets bogged down as supply outweighs demand, but with the added factors of immense drought and rising corn prices, the feeder cattle market could suffer immensely.
At Joplin Regional Stockyards in Carthage, Missouri, compared to a week ago, steers under 700 pounds traded $3.00 to $5.00 lower and steers over 700 pounds sold steady to $3.00 lower. Heifers calves traded steady to $3.00 lower and yearlings continue to sell at mostly steady prices. The CME feeder cattle index for Oct. 9: down $0.54, $141.28.
LEAN HOGS:
Lean hog contracts closed mostly lower, but some deferred contracts did scale higher as the day neared closing. December lean hogs closed $0.50 lower at $66.62, February lean hogs closed $0.32 lower at $70.22 and April lean hogs closed $0.17 lower at $74.40. Looking at the December contract, a sideways pattern is starting to build and the complex contemplates its options. The cash market hasn't been as optimistic in the last week, but last week's export report did aid as a solid relief that international pork demand is being sought after. The market technically still has some upside potential, but whether or not the fundamental driving forces move the market to resistance is unknown. Pork cutouts totaled 308.78 loads with 274.55 loads of pork cuts and 34.23 loads of trim. Pork cutout values: down $0.49, $94.31. Monday's slaughter is estimated at 490,000 head, 1,000 head more than a week ago and 3,000 head more than a year ago. The CME lean hog index for Oct. 8: up $0.09, $77.71.
TUESDAY'S CASH HOG CALL: Steady. Packers moved the cash market substantially higher and now are sitting back knowing that they have plenty of hogs committed and only need to buy to fill periodically. Unless the market takes a ride for higher prices again, steady to slightly lower is most likely the nearby trend.
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