GENERAL COMMENTS:
The livestock complex closed mostly higher as the hog market found the support from consumers that it needed, and the corn complex closed lower, which allowed for cattle to close higher. On Wednesday, the market will see the latest WASDE report be released, which could affect grain prices and consequently, the cattle contracts too. Hog prices closed higher on the Daily Direct Afternoon Hog Report, up $3.74 with a weighted average of $87.88 on 9,233 head and a five-day rolling average of $89.77. December corn is down 5 1/4 cents per bushel and December soybean meal is up $0.30. The Dow Jones Industrial Average is up 36.31 points.
LIVE CATTLE:
It was a good day for the live cattle complex as the market traded higher and feedlots are indicating through their willingness to wait to trade cattle that they're looking for higher prices again this week. October live cattle closed $1.10 higher at $145.80, December live cattle closed $1.57 higher at $148.57 and February live cattle closed $1.12 higher at $151.87. Tuesday's close was significant for the market as it pushed the complex to the upper end of its trading range and signals that it could indeed break higher if fundamental support shines through. The cash cattle market didn't see much interest throughout Tuesday's market, and given that Southern asking prices are noted at $146-plus, it's likely that trade holds off until Wednesday, or potentially even Thursday to really get underway.
Tuesday's slaughter is estimated at 128,000 head, steady with a week ago and 8,000 head more than a year ago.
Boxed beef prices closed mixed: choice up $2.12 ($246.75) and select down $0.97 ($212.85) with a movement of 33.90 loads (68.07 loads of choice, 43.85 loads of select, 11.24 loads of trim and 22.03 loads of ground beef). The choice/select spread sits at $33.90.
WEDNESDAY'S CASH CATTLE CALL: $1.00 to $2.00 higher. With chain-speeds running as aggressively as they are, combined with the fact that front-end supplies are dwindling, packers will likely have to be aggressive in this week's market in order to get cattle bought.
FEEDER CATTLE:
With the corn complex closing $0.04 to $0.05 lower in its nearby contracts, the feeder cattle market traded higher through closing and regained all of what Monday threw away. October feeders closed $2.97 higher at $175.07, November feeders closed $3.32 higher at $176.20 and January feeders closed $2.45 higher at $176.72. It helped that the live cattle complex traded higher too and that cash cattle are expected to trade higher this week as well. Sales have been hit and miss throughout the countryside, but with sale receipts lighter than normal for the month of October, some auctions have seen higher prices as some buyers are looking to get the cattle they need secured. At OKC West Livestock Auction in El Reno, Oklahoma, at their midsession point and when compared to last week, steer and heifer calves that were unweaned traded steady, but those that were long weaned traded $2.00 to $3.00 higher. Feeder cattle supply over 600 pounds was 31%. The CME Feeder Cattle Index for Oct. 10: up $0.03, $174.64.
LEAN HOGS:
The lean hog complex ran out of steam in its nearby contracts but that didn't keep the market's deferred contracts from trading higher. December lean hogs closed $0.07 lower at $79.52, February lean hogs closed $0.05 higher at $81.05 and April lean hogs closed $0.20 higher at $84.90. It was impressive that Monday's slaughter wasn't revised, and that Tuesday's slaughter came in aggressive at 489,000 head. With holidays nearing, packers are running faster chain speeds to ensure that they've got enough product from customers. It was also favorable to the market that pork values closed higher with the ham again being the strongest driving force as it gained $4.39 from Monday's close. Pork cutouts totaled 334.04 loads with 293.80 loads of pork cuts and 40.23 loads of trim. Pork cutout values: up $1.76, $103.15. Tuesday's slaughter is estimated at 489,000 head, 2,000 head more than a week ago and 7,000 head more than a year ago. The CME Lean Hog Index for Oct. 7: up $0.33, $92.98.
WEDNESDAY'S CASH HOG CALL: Higher. Packers helped drive prices higher in Tuesday's market, but they didn't buy a very large volume, which likely
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