Tuesday Midday Livestock Market Summary - Even with Election Pressure Contracts See Some Support

 General Comments

December live cattle are down $0.28 at $108.275, January feeder cattle are down $0.30 at $133.75, December lean hogs are down $0.15 at $65.8, December corn is up 3 cents per bushel and December soybean meal is up $1.90. The Dow Jones Industrial Average is up 577.00 points and NASDAQ is up 223.23 points. Heading into the afternoon hours, the livestock complex continues to trade mixed as live cattle contracts have gained support, lean hog contracts are trading mostly higher, but the feeder cattle market is veering lower. Back and forth trade behavior isn't unusual given the heightened emotion of this week.

LIVE CATTLE

Feedlots are grateful to the see the live cattle complex trading higher yet again despite outside pressures pinging on the marketplace. With boxed beef prices higher and packers having purchased significantly fewer cattle last week, feedlots are patiently waiting for the later part of this week to hopefully move the market higher. December live cattle are down $0.30 at $108.25, February live cattle are up $0.15 at $110.67 and April live cattle are up $0.12 at $113.95. Feedlots have yet to price cattle this week but rumors buzzing that cattle will be priced upwards of $110. There's been a light movement of cattle in Iowa, but not nearly enough to establish a trend for the week.

Boxed beef prices are higher: choice up $1.53 ($210.18) and select up $2.84 ($195.46) with a movement of 71 loads (40.59 loads of choice, 19.93 loads of select, 5.24 loads of trim and 5.21 loads of ground beef).

FEEDER CATTLE

Feeder cattle contracts have been motivated to trade higher in the last week but Tuesday's uncertainty has the complex shaken. November feeder cattle are up $0.02 at $137.00, January feeder cattle are down $0.15 at $133.92 and March feeders are down $0.12 at $133.70. With both the live cattle and lean hog markets trading higher, it wouldn't be unlikely to see the feeder cattle market warm up to the notion of trading higher as the day progresses. Part of the market's worry stems from rising corn prices as nearby corn contracts jump $0.02 to $0.03 per bushel.

LEAN HOGS

Strong resistance levels make it difficult for the complex to rally substantially but the lean hog market is seeking modest support throughout Tuesday's early trade. December lean hogs are down $0.37 at $65.57, February lean hogs are up $0.05 at $65.35 and April lean hogs are down $0.02 at $67.95. Helping spur the encouragement is the midday cutout value which jumped over $4.00 higher.

The projected lean hog index for 10/30/2020 is down $1.01 at $73.48, and the actual index for 10/29/2020 is down $1.00 at $74.49. Hog prices are lower on the National Direct Morning Hog Report, down $0.10 with a weighted average of $59.86, ranging from $56.00 to $60.01 on 3,838 head and a five-day rolling average of $61.15. Pork cutouts total 223.05 loads with 200.91 loads of pork cuts and 22.14 loads of trim. Pork cutout values: up $4.44, $88.58.

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