GENERAL COMMENTS:
The livestock complex is pressuring onward and forward into Tuesday's afternoon as the market warmly welcomes the interest it's continuing to see from traders. Traders are willing to continue to support the complex as fundamental indicators are strong for both the cattle and hog market at this time. December corn is down 5 1/4 cents per bushel and December soybean meal is down $10.30. The Dow Jones Industrial Average is up 230.15 points.
LIVE CATTLE:
After closing higher Monday afternoon and pushing its upper limit to close above the market's current 40-day moving average, the live cattle complex is back and ready for more Tuesday. October live cattle are up $0.15 at $148.02, December live cattle are up $0.15 at $149.35 and February live cattle are up $0.27 at $152.47. Now that market is seeing more support from boxed beef prices and is likely to see continued support in this week's cash cattle market, the live cattle contracts sit in a ripe position to rally. The cash cattle market hasn't seen any interest yet, but feedlots know that front-end supplies of market-ready cattle are thin, and if packers are going to maintain the vigorous processing speeds that they've ran all year, they'll need to procure more cattle in this week's market. Trade won't likely develop until Wednesday, or more likely Thursday. Asking prices in the South are noted at $147 to $148 and are still undeveloped in the North.
Boxed beef prices are higher: choice up $3.86 ($252.00) and select prices are up $1.38 ($220.99) with a movement of 71 loads (48.37 loads of choice, 14.26 loads of select, 2.69 loads of trim and 5.95 loads of ground beef).
FEEDER CATTLE:
With the corn complex again trending lower into Tuesday's afternoon, the feeder cattle market has been given the green light to trade higher. The market's support is two-fold as not only are grain prices slightly lower, but the live cattle market is lending ample support as it also trades higher into the afternoon, and again this week cash cattle prices are likely to trade higher, all of which helps strengthen the feeder complex. Its unlikely that feeder cattle prices see a major jump in sales this week as buyers need to see stronger prices for fat cattle in 2023 to help justify feeding close to $7.00 per bushel corn.
LEAN HOGS:
The lean hog market is keeping with Monday's aggressive tone as nearly all of the contracts are trading well above $1.00 stronger into Tuesday's afternoon. December lean hogs are up $1.30 at $86.25, February lean hogs are up $1.60 at $87.57 and April lean hogs are up $1.87 at $91.47. Monday's close helped propel the market higher come Tuesday as the day managed to process 491,000 head and pork cutout values closed $1.64 higher -- both strong fundamental cues for the market to rally upon come Tuesday morning. If Tuesday can yield the same type of close, then Wednesday's marekt stands a strong chance at rallying too.
The projected lean hog index for Oct. 17 is down $0.16 at $93.19 and the actual index for Oct. 14 is up $0.26 at $93.35. Hog prices are higher on the Daily Direct Morning Hog Report, up $2.44 with a weighted average of $87.07, ranging from $81.00 to $98.00 on 5,750 head and a five-day rolling average of $86.98. Pork cutouts total 201.49 loads with 176.31 loads of pork cuts and 25.17 loads of trim. Pork cutout values: down $1.52, $101.98.
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