General Comments
Rallying corn prices are hindering the feeder cattle market's ability to rally alongside the rest of the livestock contracts. Both live cattle and lean hog contracts are trading fully higher into Thursday's afternoon and the cash cattle market is seeing packer interest improve. December corn is up 4 3/4 cents per bushel and December soybean meal is up $3.30. The Dow Jones Industrial Average is up 398.78 points and NASDAQ is up 237.66 points.
LIVE CATTLE
The live cattle complex is sitting in a fine position for feedlots to push on the cash cattle market. Following last week's disappoint trade, feedlots are anxious to move this week's cash cattle market higher and make up for some lost ground. With boxed beef prices printing higher and the futures market trading higher throughout the week, trade later Thursday afternoon or into Friday could be rewarding to feedlots. December live cattle are up $0.22 at $108.10, February live cattle are up $0.42 at $111.20 and April live cattle are up $0.45 at $115.12. Packer inquiry is growing as bids of $107 are offered in Kansas, Colorado and Nebraska, and dressed cattle are bid on in Nebraska at $167.
Beef net sales of 20,400 mt reported for 2020 were up 8% from the previous week and 9% from the prior four-week average. The three primary increases were from Japan (4,700 mt, including decreases of 400 mt), South Korea (4,600 mt, including decreases of 700 mt) and China (3,600 mt, including decreases of 100 mt).
Boxed beef prices are higher: choice up $1.31 ($211.50) and select up $3.34 ($200.39) with a movement of 74 loads (44.63 loads of choice, 16.60 loads of select, 3.16 loads of trim and 9.62 loads of ground beef).
FEEDER CATTLE
As corn prices rally again $0.03 to $0.05 higher in nearby contracts, the feeder cattle market faces some opposition in the day's quest to trade higher along side the rest of the livestock marketplace. November feeders are down $0.10 at $137.60, January feeders are up $0.17 at $135.32 and March feeders are down $0.20 at $134.67. Watching sale barn reports this week has been interesting as sale receipts are lighter even though the market has been trading mostly higher and good shipping weather prevails.
LEAN HOGS
Thursday's export report wasn't a big market mover as the market was hopeful to see China more aggressive, but its stronger movement did give the futures market some gusto to rally modestly upon. December lean hogs are up $0.52 at $66.85, February lean hogs are up $0.77 at $67.77 and April lean hogs are up $0.65 at $70.05. Pork cutout values have been etching lower but Thursday's midday report is up substantially and may even trick into the day's closing report.
Pork net sales of 42,200 mt reported for 2020 were up 46% from the previous week and 18% from the prior four-week average. The three primary increases were from Mexico (14,700 mt, including decreases of 700 mt), China (10,300 mt, including decreases of 1,400 mt) and South Korea (5,100 mt, including decreases of 100 mt).
The projected lean hog index for 11/4/2020 is down $0.53 at $71.52, and the actual index for 11/3/2020 is down $0.83 at $72.05. Hog prices on the National Direct Morning Hog Report are unavailable due to confidentially. Pork cutouts total 148.53 loads with 119.44 loads of pork cuts and 29.09 loads of trim. Pork cutout values: up $8.59, $91.00.
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