Tuesday Midday Livestock Market Summary - Rising Corn Prices Worry Feeder Cattle Market

General Comments

The livestock contracts have kept with their slow progression scaling cautiously higher into Tuesday's afternoon trade, all except for the feeder cattle market which is yielding to the markets corn rally. The cash cattle market remains quiet with some early asking prices noted but bids still elusive. December corn is up 8 3/4 cents per bushel and December soybean meal is up $13.00. The Dow Jones Industrial Average is up 23.54 points and NASDAQ is down 33.23 points.

LIVE CATTLE

The live cattle complex has help moderate support throughout the morning despite corn prices rallying and midday boxed beef prices being lower. October live cattle are up $0.47 at $109.30, December live cattle are up $0.50 at $112.27 and February live cattle are up $0.37 at $115.60. Helping stir the resilience throughout the live cattle market is the robust push from the cash cattle market to keep securing higher prices. The countryside is still quiet with trade at a mere standstill, but parts of Texas have priced cattle at $110 this week.

Boxed beef prices are lower: choice down $0.82 ($216.16) and select down $0.81 ($207.20) with a movement of 108 loads (51.47 loads of choice, 11.85 loads of select, 14.38 loads of trim and 30.63 loads of ground beef).

FEEDER CATTLE

Last Wednesday's corn rally put a damper on the feeder cattle contracts' motivation and Tuesday's (today's) $0.06 to $0.08 rally is hindering the complex again. Concerns about feed availability and feed costs continue to worry feedlots especially as drought continues to spread across the country. October feeder cattle are down $1.57 at $138.47, November feeders are down $1.75 at $138.17 and January feeders are down $1.37 at $136.77. Sales are starting to see more calves trotting across their scales as producers are begging to wean their spring-born calves.

LEAN HOGS

The lean hog complex is split with nearby contracts willing and able to rally, but deferred contracts are fighting some minor downward pressure. October lean hogs are up $1.45 at $76.20, December lean hogs are up $1.20 at $63.85 and February lean hogs are up $0.72 at $68.90. With some weakness in the cash market and cutout values down ever so slightly, the market may be pressured to trade fully lower into the afternoon.

The projected lean hog index for 10/5/2020 is up $0.15 at $77.41, and the actual index for 10/2/2020 is up $0.45 at $77.26. Hog prices are lower on the National Direct Morning Hog Report, down $0.32 with a weighted average of $64.23, ranging from $60.00 to $65.00 on 4,328 head and a five-day rolling average of $63.76. Pork cutouts total 219.93 loads with 200.85 loads of pork cuts and 19.08 loads of trim. Pork cutouts values: down $0.05, $94.95.