Even though Tuesday's trade wasn't as bellringing as Monday's trade, the live cattle market still walked away with considerable wins. The feeder cattle market and lean hog market didn't fare as well, but neither one gave up lofty positioning. Cash prices closed lower on the National Direct Afternoon Hog Report, down $0.59 with a weighted average of $60.34 on 8,180 head. December corn is up 15 1/2 cents per bushel and December soybean meal is up $10.70. The Dow Jones Industrial Average is up 262.95 points and NASDAQ is down 159.92 points.
LIVE CATTLE:
Even with the market's lack of trader interest following Monday's monstrous gains, the live cattle market managed to close modestly higher. The day's biggest win falls solely on the healthy boxed beef prices that saw major advancements Tuesday afternoon. As Feedlots look at the live cattle market, they're pleased to see the market favoring a stronger cash cattle week and potentially a better November. December live cattle closed $0.05 higher at $111.87, February live cattle closed $0.02 higher at $115.10 and April live cattle closed $0.10 lower at $118.27. Tuesday's cash cattle market was uneventful again as feedlots continue to keep their eye on the prize and want to push this week's market into the later part of the week to hopefully secure $1.00 to $2.00 gains, if not potentially even $3.00 higher before the week's over. Tuesday's slaughter is estimated at 120,000 head, 1,000 head less than a week ago and steady with a year ago.
Boxed beef prices closed significantly higher: choice up $4.86 ($222.25) and select up $6.18 ($208.55) with a movement of 136 loads (95.75 loads of choice, 20.03 loads of select, 12.74 loads of trim and 7.89 loads of ground beef).
WENDESDAY'S CASH CATTLE CALL: Higher. When this week's trade develops, it will be for higher prices, pinpointing how much higher and when is the tricky part. It wouldn't be unlikely to see some trade develop after the online auction Wednesday morning, but Thursday and Friday are more likely to be the big days for this week's cash cattle trade.
FEEDER CATTLE:
The feeder cattle market would have liked to close higher following Monday's vigorous trade, but when the corn market started to rally considerably higher, the market's ambitions died, as keeping feed costs in check is a necessity. The nearby corn contracts closed $0.11 to $0.15 higher per bushel and the spot December contract closed at $4.23 per bushel, pushing past the market's current resistance levels. Feeder cattle contracts would have liked to rally modestly into closing like the live cattle market, but those hopes weren't in the cards Tuesday afternoon. November feeders closed $0.77 lower at $140.85, January feeders closed $0.32 lower at $140.40 and March feeders closed $0.40 lower at $139.55. At Winter Livestock Auction in La Junta, Colorado, compared to a week ago, steer calves under 450 pounds sold $2.00 to $3.00 higher, steers weighing 450 to 500 pounds sold steady to instances of $5.00 higher, steers weighing 500 to 650 pounds sold $3.00 to $5.00 higher, steers weighing 650 to 700 pounds sold $5.00 to $8.00 higher and all steers over 700 pounds were called steady to $2.00 stronger. Heifer calves weighing under 650 pounds sold mostly $2.00 to $3.00 higher with instances of $5.00 higher and heifers weighing 650 to 700 pounds sold on average $3.00 to $5.00 higher. The CME feeder cattle index for Nov. 9: up $0.27, $135.85.
LEAN HOGS:
The lean hog market saw a better close than what Monday had to offer as deferred contracts rallied some interest and provoked traders into stepping into parts of the market. Nearby contracts still closed lower, but that was largely anticipated with beef prices scaling higher and contracts fighting resistance. December lean hogs closed $0.47 lower at $65.12, February lean hogs closed $0.87 lower at $66.57 and April lean hogs closed $0.22 lower at $70.42. Pork cutouts totaled 413.69 loads with 368.83 loads of pork cuts and 44.86 loads of trim. Pork cutout values: down $2.71, $82.98. Tuesday's slaughter is estimated at 493,000 head, steady with both a week and year ago. The CME lean hog index for Nov. 6: up $0.01, $71.13.
WEDNESDAY'S CASH HOG CALL: Lower. As the market trades in a lackluster sideways trend and pork cutout values wane lower, packers aren't overly anxious to dive into the cash market.
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