Tuesday's trade left the cattle complex mostly lower (other than in nearby live cattle contracts) but boosted the lean hog market higher again! The feeder cattle market closed sharply lower as corn prices scaled higher and concerns about input costs are on everyone's mind. Hog prices closed $0.47 lower on the National Direct Afternoon Hog Report with a weighted average of $64.08 on 4,803. December corn is up 5 1/2 cents per bushel and December soybean meal is up $9.50. The Dow Jones Industrial Average is down 375.88 points and NASDAQ is down 177.88 points.
LIVE CATTLE:
Live cattle contracts eked by as nearby contracts closed slightly higher, but the rest of the complex fell lower. October live cattle closed $0.37 higher at $109.20, December live cattle closed $0.20 higher at $111.95 and February live cattle closed $0.12 higher at $115.35. The countryside remains at an utter standstill, with the only asking price noted for the week of $110 in the South. As the week progresses, feeders are expected to price cattle at least $2.00 higher again and could successfully achieve it. Tuesday's slaughter is estimated at 120,000 head, steady with a week ago and 2,000 head more than a year ago.
Boxed beef prices closed lower: choice down $0.74 ($216.24) and select down $1.17 ($206.84) with a movement of 168 loads (94.75 loads of choice, 20.17 loads of select, 19.04 loads of trim and 34.08 loads of ground beef).
WEDNESDAY'S CASH CATTLE CALL: Higher. The market may see some packers get aggressive after the online auction, but whether or not feeders will be willing to sell remains the question.
FEEDER CATTLE:
Tuesday's feeder cattle rally was robbed as the corn market decided to rally throughout the day, closing $0.04 to $0.05 higher in nearby contracts. This comes at a poor time for the feeder cattle market, given that the fall run is starting to attract calves and buyers. October feeders closed $1.92 lower at $138.12, November feeders closed $2.40 lower at $137.52 and January feeders closed $1.97 lower at $136.15. At OKC West Livestock Auction in El Reno, Oklahoma, compared to a week ago, weaned steer calves traded $1.00 to $3.00 higher, while unweaned steers sold weaker when compared to a week ago; heifer calves sold $2.00 to $4.00 higher. Tuesday's market showed the most strength for calves with a known vaccine program. The CME feeder cattle index for Oct. 5: up $0.36, $143.10.
LEAN HOGS:
Early in the day the lean hog market was indecisive, dancing on both sides of steady, but as the support for the feeder cattle contracts fell through the bottom of the market, support started to solidify for the lean hog sector. October lean hogs closed $1.57 higher at $76.32, December lean hogs closed $1.22 higher at $63.87 and February lean hogs closed $0.77 higher at $68.95. Pork cutouts totaled 360.82 loads with 331.51 loads of pork cuts and 29.32 loads of trim. Pork cutout values: down $2.45, $92.55. Tuesday's slaughter is estimated at 487,000 head, 2,000 head more than a week ago and 1,000 head less than a year ago. The CME lean hog index for Oct. 3: up $0.45, $77.26.
WEDNESDAY'S CASH HOG CALL: Steady. The board closed higher but cutout values closed lower. At some point, packers are going to sit back knowing that they have plenty of supply secured and let the market work its way lower.
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