Tuesday Midday Livestock Market Summary - Uncertainty and Lack of Support Leave Contracts Lower

 General Comments

The livestock complex still isn't seeing followed through support from buyers as all three contracts are slipping lower. The feeder cattle market is seeing the biggest regression as the smallest rally in the corn market can put calf buyers on edge and make break-evens ever so challenging. December corn is up 2 cents per bushel and December soybean meal is up $2.10. The Dow Jones Industrial Average is down 113.75 points and NASDAQ is up 2.39 points.

LIVE CATTLE

The live cattle market is scaling lower, lacking trader interest like the rest of the livestock contracts but thankfully not falling as abruptly as the feeder cattle market. Following last week's advancements within the cash cattle market the board was thought to have had more strength but early this week the market's direction seems unknown. October live cattle are down $0.32 at $108.02, December live cattle are down $0.75 at $110.07 and February live cattle are down $0.50 at $112.57. A few bids are popping up throughout the countryside as packers offer $107 in Iowa and $108 in Texas. Packers see the board's weakness as an opportunity to hopefully pressure the cash market to trade steady, if not lower. So far asking prices are mostly elusive in the North but Southern feedlots have priced their cattle at mostly $111 to $112.

Boxed beef prices are mixed: choice down $0.70 ($213.92) and select up $1.09 ($201.43) with a movement of 81 loads (34.03 loads of choice, 28.41 loads of select, 8.06 loads of trim and 10.06 loads of ground beef).

FEEDER CATTLE

Watching the feeder cattle market tumble lower as the corn market captures a modest midday boost and as the live cattle complex lacks certainty is utterly painful given that this week kicks off a strong test for the fall run. As trucks continue to back up to unloading chutes and continue to fill sale barns with calves ready to hit the fall run, producers are leery as the board continues to fall. October feeders are down $0.80 at $136.50, November feeders are down $0.52 at $135.02 and January feeders are down $1.17 at $132.47. As more and more farmer feeders are getting on the backside of harvest, their contribution to calf market cannot be overlooked and hopefully will help protect some of the calves that are to sell this week.

LEAN HOGS

Deferred support is staring to develop throughout the lean hog market though nearby contracts still trend slightly lower. December lean hogs are down $1.00 at $65.62, February lean hogs are down $0.50 at $69.72 and April lean hogs are down $0.10 at $74.30. Pork cutout values continue with their choppy trade as midday prices are more than $6.00 stronger. If export demand continues to be robust, the continued support from domestic demand could bolster the market and help keep prices elevated.

The projected lean hogs index for 10/12/2020 is up $0.07 at $78.21 and the actual index for 10/9/2020 is up $0.43 at $78.14. Hog prices are lower on the National Direct Morning Hog Report, down $1.70 with a weighted average of $62.28, ranging from $60.00 to $62.28 on 3,233 head and a five-day rolling average of $63.76. Pork cutouts total 223.85 loads with 208.81 loads of pork cuts and 15.04 loads of trim. Pork cutout values: up $6.72, $101.03.