General Comments
It's been a tedious day of dancing on both sides of steady for the cattle contracts while the lean hog market scales steadily lower. With the corn contracts falling $0.03 to $0.05 some feeder cattle markets hint at the notion of trading higher but have yet to find the technical support.
December corn is down 5 cents per bushel and December soybean meal is down $2.70. The Dow Jones Industrial Average is up 54.23 points and NASDAQ is up 209.91 points.
LIVE CATTLE
The live cattle market is feeling more and more confident in trading higher as the noon hour approaches. December live cattle are up $0.72 at $112.60, February live cattle are up $0.07 at $115.17 and April live cattle are up $0.30 at $118.57. The market was cautious to start the day's trade but as time has progressed and as packers are showing more interest in the cash cattle market, the market is facilitating some of its upward potential. The countryside is still mostly quiet following the Fed Cattle Exchange, but there are some regional bids offered by a packer in Nebraska for $166. Trade could develop Wednesday afternoon but is likely to hold off until Thursday or Friday. Asking prices in the South at $112 live and asking prices in the North have yet to be established.
The Fed Cattle Exchange Auction listed a total of 1,119 head, of which none actually sold, 527 head were listed as unsold, and 592 head were listed as PO (Passed Offer). The state by state breakdown looks like this: Kansas 148 total head, with all PO ($110.00); NE 96 total head, with all 96 head unsold; TX 875 total head, with 431 head unsold, and 444 head listed as PO ($110.00 to $110.25). The delivery date/weighted averages breakdown is as listed: 1-9-day delivery: 579 head total, and 1-17-day delivery 540 head total.
Boxed beef prices are mixed: choice up $0.05 ($222.30) and select down $0.23 ($208.32) with a movement of 92 loads (55.24 loads of choice, 17.98 loads of select, 3.59 loads of trim and 15.19 loads of ground beef).
FEEDER CATTLE
After Tuesday's aggressive corn rally the feeder cattle market is rocked back on its heels wanting to make sure the corn market isn't going to take another run at higher prices before letting its guard down. November feeder cattle are down $0.27 at $140.57, January feeder cattle are down $0.55 at $139.85 and March feeders are down $0.72 at $138.92. Some deferred contracts are finding modest support creeping back into the market but nearby contracts thus far in the day are leery of the corn market's intentions. If cash cattle trade kicks off at some point during Wednesday's trade and the live cattle market confidently trades higher, some support from the live cattle side of things could trickle into the feeder cattle market.
LEAN HOGS
It's been a nondescriptive, lackadaisical week for the lean hog market as the contracts work their way lower little by little. December lean hogs are up $0.35 at $65.47, February lean hogs are down $0.37 at $66.20 and April lean hogs are down $0.45 at $69.97. Thursday's export report has a big pull on the hog market and if it shows ambitious purchasing from China the market may see a slight uptick.
The projected lean hog index for 11/9/2020 is up $0.12 at $71.25, and the actual index for 11/6/2020 is up $0.01 at $71.13. Hog prices are unavailable due to confidentiality purposes on the National Direct Morning Hog Report, it is noted that only 1,040 hogs sold this morning and the day rolling average sits at $60.58. Pork cutouts total 225.20 loads with 183.33 loads of pork cuts and 41.87 loads of trim. Pork cutout values: down $0.17, $82.81.
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