Tuesday Midday Livestock Market Update - Higher Corn Puts a Kibosh to Hopes of Higher Trade for Feeders

GENERAL COMMENTS:

As the livestock complex nears the noon hour, the corn market's mild gain has rocked the feeder cattle complex back on its heels. The lean hog complex is clinging to its market's strong fundamentals and hopes that stronger tones can again find their way into the contracts before closing time. December corn is up 4 cents per bushel and December soybean meal is down $2.20. The Dow Jones Industrial Average is up 815.46 points.

LIVE CATTLE:

The nearby live cattle contracts are struggling, but the deferred contracts are still trading higher into Tuesday's afternoon as the market clings to its bullish fundamentals. October live cattle are down $0.07 at $144.25, December live cattle are down $0.57 at $147.45 and February live cattle are down $0.17 at $151.37. With boxed beef prices closing higher Monday afternoon, and midday prices higher on Tuesday, could it be that the market's seen its seasonal low or will tough economic times drive prices lower in the weeks to come? Regardless, feedlots are pleased to see the heightened interest in beef prices as it means that packers will likely continue to run chain speeds aggressively and need to stay active in the cash market. The cash cattle market hasn't seen any interest at this point, though packers could grow more curious as the day goes on. Asking prices in the South are noted at $145 but are unknown in the North.

Boxed beef prices are higher: choice up $2.88 ($248.82) and select up $0.15 ($221.46) with a movement of 52 loads (28.86 loads of choice, 10.17 loads of select, 3.12 loads of trim and 9.62 loads of ground beef).

FEEDER CATTLE:

The feeder cattle market started the day out stronger but as the corn complex grows stronger too, it's now heading into Tuesday's afternoon lower. October feeders are down $0.72 at $174.80, November feeders are down $0.62 at $175.42 and January feeders are down $0.55 at $176.47. What's encouraging at this point, however, is that, even though the feeder cattle market is trading lower, it's not pressuring Monday's lower trading range.

LEAN HOGS:

The lean hog complex was eager to start the day off stronger, but as the day has progressed, its market has grown hesitant and is now heading into Tuesday's afternoon fully lower. October lean hogs are down $1.15 at $87.62, December lean hogs are down $2.17 at $75.55 and February lean hogs are down $1.32 at $78.77. Even though the futures market may be retracting, the fundamental side of the market looks rather supportive as midday cash prices and early pork cutout values are higher. The $14.62 gain in bellies Monday afternoon helped pull pork cutout values higher, so, heading into Tuesday's afternoon, seeking the afternoon cutout data will be intriguing as everyone knows that bellies are every volatile.

The projected lean hog index is delayed from the source. Hog prices are higher on the Daily Direct Morning Hog Report, up $3.14 with a weighted average of $85.81, ranging from $80.00 to $95.50 on 4,553 head and a five-day rolling average of $86.55. Pork cutouts total 196.98 loads with 173.83 loads of pork cuts and 23.15 loads of trim. Pork cutout values: up $0.05, $99.98.