Following last week's brutal trade throughout the livestock complex, it was a pleasure seeing all three markets close mostly higher, even it was just for minor gains. Traders seemed slightly more willing to dabble in the livestock contracts, which helped to keep Monday's trade elevated through closing. Hog prices closed higher on the National Direct Afternoon Hog Report, up $3.59 with a weighted average of $62.30 on 5,008 head. December corn is down 1 1/2 cents per bushel and December soybean meal is up $3.20. The Dow Jones Industrial Average is down 650.19 points and NASDAQ is down 189.34 points.
LIVE CATTLE:
Except for a couple of nearby contracts that closed only mildly lower, the live cattle market closed mostly higher. December live cattle closed $0.17 lower at $103.40, February live cattle closed $0.22 lower at $106.40 and April live cattle closed $0.22 higher at $106.40. The market's buy-in from traders is still relatively weak considering how much ground was lost last week, and to move the market substantially higher, full support will be needed given the bearish fundamentals. Monday's cash cattle trade was a typical Monday as merely no action was seen. Asking prices have yet to be established and packers weren't overly interested about shopping around this early in the week. Monday's slaughter is estimated at 118,000 head, steady with a week ago and 2,000 head more than a year ago.
Boxed beef prices closed mixed: choice up $0.34 ($207.83) and select down $2.91 ($188.49) with a movement of 135 loads (60.80 loads of choice, 44.49 loads of select, 18.59 loads of trim and 11.49 loads of ground beef).
TUESDAY'S CASH CATTLE CALL: Steady at best. This week's market could easily fall lower if bears have their way, but if bulls rally and unite feeders together, the market could trade at least steady. Unless boxed beef prices turn around, it's going to be hard to talk packers out of much as they are seeing some pressure from retail sales.
FEEDER CATTLE:
Feeder cattle contracts secured a higher close for Monday's trade and thoroughly enjoyed seeing the minor break in the corn market's rally. November feeders closed $0.92 higher at $130.57, January feeders closed $1.22 higher at $126.77 and March feeders closed $0.92 higher at $126.45. The market's rally will be tested throughout the rest of the week as the market's bearish favors haven't disappeared. At Joplin Regional Stockyards in Carthage, Missouri, compared to a week ago, steer and heifer calves were $2.00 to $5.00 lower and yearlings were steady to $5.00 lower. The biggest difference though was the supply that was tested in Monday's market after seeing last week's weakness throughout the entire marketplace. Cattlemen saw the lack of demand for calves and offered fewer in Monday's sale. The CME feeder cattle index for Oct. 23: down $0.31, $133.70.
LEAN HOGS:
The lean hog market rallied into the afternoon and closed fully higher, fueled by a strong cash market. December lean hogs closed $0.72 higher at $67.75, February lean hogs closed $0.72 higher at $67.65 and April lean hogs closed $0.35 higher at $70.07. Even though midday cutout values were stronger, the market closed with a weaker cutout value, but with the market's other rally facets, the negative close didn't affect the market's morale. Helping cash hog prices is the fact that packers are clipping through hogs at a vigorous pace, pressuring year ago speeds and running at full capacity. Pork cutouts totaled 305.16 loads with 271.02 loads of pork cuts and 34.14 loads of trim. Pork cutout values: down $1.39, $91.86. Monday's slaughter is estimated at 492,000 head, 15,000 head more than a week ago and 1,000 head more than a year ago. Saturday's hog slaughter was revised to 237,000 head. The CME lean hog index for Oct. 22: down $0.06, $78.54.
TUESDAY'S CASH HOG CALL: Steady. With the combination of packers' aggression Monday afternoon and the board's higher close, steady prices could be obtained.
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