The market's biggest questions for the day surrounded the feeder cattle complex, as corn prices tipped higher, adding immense pressure to the marketplace. As the corn market weakened near close, the feeder cattle market was able to secure higher prices. Hog prices closed lower on the National Direct Afternoon Hog Report, down $0.38 with a weighted average of $63.85 on 6,673 head. December corn is up 3 3/4 cents per bushel and December soybean meal is up $6.30. The Dow Jones Industrial Average is up 530.70 points and NASDAQ is up 210.00 points.
LIVE CATTLE:
This week's live cattle market has successfully secured prices (slowly but surely). October live cattle closed $0.97 higher at $110.17, December live cattle closed $1.15 higher at $113.10 and February live cattle closed $0.57 higher at $115.92. As feeders regain some leverage in the cash cattle market and know that packers want to keep processing schedules full, this week's cash cattle market is bound to be higher. There was a light trade in the North for $169 and some limited trade in the South for $108.50, but neither were substantial enough to set a trend for the week. Wednesday's slaughter is estimated at 119,000 head, 1,000 head less than a week ago and 1,000 head more than a year ago.
Boxed beef prices closed mixed: choice up $0.64 ($216.88) and select down $1.26 ($205.58) with a movement of 159 loads (103.79 loads of choice, 25.76 loads of select, 6.06 loads of trim and 23.05 loads of ground beef).
THURSDAY'S CASH CATTLE CALL: Higher. Wednesday's cash cattle trade pushed the market roughly $1.00 higher, but seeing that it was only on a limited test doesn't establish a strong precedent throughout the market. It's likely to see prices jump $2.00 higher this week.
FEEDER CATTLE:
Feeder cattle contracts went rounds with the corn market, trading lower throughout most of the day but able to close slightly higher as the corn market's rally weakened at the day's end. Even with being able to close $0.35 stronger for the day, the November complex veered lower to prices not seen since the second week of July. October feeder cattle closed $0.37 higher at $138.50, November feeders closed $0.35 higher at $137.87 and January feeders closed $0.17 higher at $136.32. At OKC West Livestock Auction in El Reno, Oklahoma, compared to a week ago, feeder steers traded mostly steady. Feeder heifers over 800 pounds sold mostly steady but heifers under 800 pounds sold $2.00 to $3.00 lower. Weaned steer calves sold $1.00 to $3.00 higher, but the steer calves that were unweaned sold weaker. Heifer calves sold $2.00 to $4.00 higher and excellent demand was noted for weaned calves with shots. The CME feeder cattle index for Oct. 7: down $0.39, $142.71.
LEAN HOGS:
The lean hog market once again closed higher, with nearby contracts seeing the biggest gains for Wednesday. October lean hogs closed $0.55 higher at $76.87, December lean hogs closed $0.70 higher at $64.57 and February lean hogs closed $0.17 higher at $69.12. A helpful boost to the market was the follow-through support from pork cutout values. As the market trends in a sideways scale, the lean hog sector is looking for support to sustain these levels or could end up falling lower. Again, be prepared for Thursday's export report to create a little ripple in the market, regardless if higher or lower demand is seen. Pork cutouts totaled 310.32 loads with 280.94 loads of pork cutouts and 29.38 loads of trim. Pork cutout values: up $2.63, $95.18. Wednesday's slaughter is estimated at 489,000 head, 22,000 head more than a week ago and 3,000 head less than a year ago. The CME lean hog index for Oct. 5: up $0.15, $77.41
THURSDAY'S CASH HOG CALL: Lower. With packers having ample supply secured, their ambition to go out and bid the cash market higher is lagging.
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