Monday's trade was exceptionally strong for cattle contracts, but there was ample support throughout all livestock markets. One of the big driving factors was the announcement that a company has found a COVID-19 vaccine that's supposedly 90% effective. Hog prices closed higher on the National Direct Afternoon Hog Report, up $0.68 with a weighted average of $60.93 on 5,170 head. December corn is up 3/4 cent per bushel and December soybean meal is up $1.70. The Dow Jones Industrial Average is up 834.57 points and NASDAQ is down 181.45 points.
LIVE CATTLE:
The live cattle market rallied alongside the feeder cattle market and both markets jumped beyond their 40- and 100-day moving averages before the day's close. December live cattle closed $3.17 higher at $111.82, February live cattle closed $2.92 higher at $115.07 and April live cattle closed $2.32 higher at $118.37. As feedlots look at their smaller showlists this week, the healthy supportive trade from the board helps boost the market's morale and could help feedlots secure another week of stronger cash trade. Monday's slaughter is estimated at 117,000 head, 2,000 head less than a week ago and 5,000 head more than a year ago.
Boxed beef price closed stronger: choice up $3.07 ($217.39) and select up $3.88 ($202.37) with a movement of 122 loads (64.25 loads of choice, 19.74 load of select, 17.60 loads of trim and 20.68 loads of ground beef).
TUESDAY'S CASH CATTLE CALL: Higher. It's unlikely that trade will develop as early as Tuesday, but when trade does develop this week, it's anticipated to be higher. Feedlots were able to clean up some of their heavier pens last week and consequently built more leverage in their position by doing so.
FEEDER CATTLE:
Feeder cattle contracts crushed the board throughout Monday's trade and nearly closed limit higher in the January contract. As opposite to other commodity markets, the cattle contracts are sitting in a good position for traders to invest and work the market higher as there's plenty of upside potential. November feeder cattle closed $3.92 higher at $141.62, January feeders closed $4.80 higher at $140.72 and March feeders closed $4.77 higher at $139.95. At Joplin Regional Stockyards, compared to a week ago, steer calves and yearling steers sold steady to $5.00 higher with the strongest market test on the 400-pound steer calves. Heifers were hard to compare as these wasn't a good comparison between the two markets, but trade was considered mostly steady on the heifers. The CME feeder cattle index for Nov. 6: not available at this time.
LEAN HOGS:
The lean hog complex didn't see gains over $1.00 Monday afternoon, but the complex did close in a strong manner considering that cash prices Monday afternoon were higher, pork cutouts closed stronger and, with the market being pushed lower from resistance levels, any uptick in price is good. December lean hogs closed $0.70 higher at $65.60, February lean hogs closed $0.42 higher at $67.45 and April lean hogs closed $0.22 higher at 70.65. Pork cutouts totaled 353.41 loads with 321.38 loads of pork cuts and 32.03 loads of trim. Pork cutout values: up $1.63, $85.69. Monday's slaughter is estimated at 493,000 head, steady with a week ago and 49,000 head more than a year ago. The CME lean hog index for Nov. 5: down $0.40, $71.12.
TUESDAY'S CASH HOG CALL: Steady to somewhat higher. Packers have set another quick pace for this week's slaughter, which could help cash prices.
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