GENERAL COMMENTS:
Thus far Tuesday has been a slow, uneventful day in the livestock complex with most of the futures trending lower. Tuesday's lackadaisical market seems comfortable trading lower as traders need to see renewed support from the cash markets to confidently move the futures market higher again. December corn is down 2 3/4 cents per bushel and December soybean meal is up $5.10. The Dow Jones Industrial Average is down 203.61 points and NASDAQ is down 76.52 points.
LIVE CATTLE:
The live cattle complex is trading mostly lower, other than summer month contracts of 2022. December live cattle are steady at $132.10, February live cattle are down $0.35 at $136.77 and April live cattle are down $0.22 at $140.17. Tuesday's lower trend throughout the futures doesn't come as a surprise, but rather seems to be posing as a break in the market as traders look for strong fundamentals to carry this rally. Thankfully with packers already offering some bids on cattle in the North, and boxed beef prices higher, finding the fundamental support they're after shouldn't be too hard. A few bids have been offered in Nebraska at $130, but thus far feedlots have let the offer sit idle. Southern feedlots are asking $132 to $134, and the North has yet to disclose what their initial asking prices will be. It's unlikely trade will really get underway until later in the week as feedlots are expected to demand higher prices again this week.
Boxed beef prices are higher: choice up $0.84 ($289.49) and select up $3.19 ($271.79) with a movement of 107 loads (59.85 loads of choice, 16.96 loads of select, 6.13 loads of trim and 23.76 loads of ground beef).
FEEDER CATTLE:
With corn futures are trending lower, feeder cattle futures would usually like to rally, but traders aren't willing to budge quite yet. The entire complex seems to be paused, waiting for substantial fundamental support to build and then traders will likely reevaluate their positions. Thankfully it shouldn't take long for traders to note the support that's building in sale barns here as of late as buyers are seeing the opportunity that could come in the 2022 market. At Oklahoma National Stockyards in Oklahoma City, Oklahoma, by the sale's end on over 10,000 head, feeder steers and heifers were called $5.00 to $7.00 higher and steer calves were called $7.00 to $10.00 higher. November feeders are down $0.57 at $158.00, January feeders are down $0.42 at $159.87 and March feeders are down $0.32 at $161.07.
LEAN HOGS:
Lean hog futures are keeping to the downward trend they established early Tuesday morning and, seeing the higher imports and lower exports on Tuesday's WASDE report, the complex will likely close lower. December lean hogs are down $1.37 at $75.00, February lean hogs are down $0.55 at $78.82 and April lean hogs are down $0.52 at $83.50. Fundamentally the market isn't overly supportive either as cash hog prices are lower and pork cutouts are lower. But the day's slaughter is expected to reach 479,000 head, which is better than Monday's 477,000 head and every little bit helps.
The projected CME Lean Hog Index for 11/8/2021 is down $0.06 at $79.23, and the actual index for 11/5/2021 is up $0.60 at $79.29. Hog prices are lower on the National Direct Morning Hog Report, down $0.71 with a weighted average of $58.05, ranging from $57.00 to $58.50 on 3,875 head and a five-day rolling average of $59.32. Pork cutouts total 221.81 loads with 202.37 loads of pork cuts and 19.43 loads of trim. Pork cutout values: down $0.87, $93.99.
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