GENERAL COMMENTS:
The livestock complex is off to strong start thus far Monday. Given that traders are willingly supporting the contracts, so long as the market's fundamental support comes through, the contracts should have no problem closing higher this afternoon. December corn is down 2 1/4 cents per bushel and December soybean meal is down $3.90. The Dow Jones Industrial Average is up 253.08 points.
LIVE CATTLE:
The live cattle complex is off to a stronger start for the week with nearly all of the contracts trading higher. December live cattle are up $1.10 at $152.75, February live cattle are up $0.52 at $154.90 and April live cattle are up $0.35 at $158.35. If the market is able to keep the momentum through closing, then it could be that support is forming in the December contract around $154.50. It's important to note that in last week's cash cattle movement, packers committed 78% of their entire purchase for the nearby delivery, which again signals that they're in desperate need of cattle. Feedlots are expected to price cattle higher again this week.
Last week's negotiated cash cattle trade totaled 88,348 head. Of that, 78% (68,623 head) were committed for the nearby delivery, while the remaining 22% (19,725 head) were committed for the deferred delivery.
Boxed beef prices are higher: choice up $0.59 ($264.34) and select up $1.94 ($233.84) with a movement of 51 loads (30.63 loads of choice, 6.15 loads of select, 8.23 loads of trim and 6.32 loads of ground beef).
FEEDER CATTLE:
With the corn complex trending around $0.02 lower into Monday's afternoon, and live cattle wasting no time in trading higher, the feeder cattle contracts are too off to a higher start this week. The feeder cattle contracts aren't nearly as aggressive in their rally as are the live cattle contracts, but given that there's less immediate upside potential for feeders, that naturally comes with the territory. Once there's less volatility in the market, which large hinges on Russia, Ukraine and whether or not Ukraine is allowed access to export some of their grains -- the feeder cattle complex could see more upside potential. January feeders are up $0.07 at $179.70, March feeders are up $0.42 at $182.05 and April feeders are up $0.57 at $185.10.
LEAN HOGS:
The lean hog complex is running aggressively into Monday's afternoon as the market is finding tremendous support from traders and is pleased with the fundamental demand that's supported the market thus far. December lean hogs are up $3.45 at $86.42, February lean hogs are up $2.40 at $88.82 and April lean hogs are up $1.77 at $94.17. What will be interesting to watch this week will again be processing speeds in the pork sector. Last week, processing speeds were noticeably slower, which seemed to hinder the cash hog market. However, if seasonal holiday demand can send pork cutout values higher, there's still a chance that this week's cash market will see better interest.
The projected lean hog index for Nov. 4 is down $0.57 at $90.88, and the actual index for Nov. 3 is down $0.89 at $91.45. Hog prices are lower on the Daily Direct Morning Hog Report, down $1.48 with a weighted average of $82.68, ranging from $82.00 to $92.50 on 3,312 head and a five-day rolling average of $85.80. Pork cutouts total 160.12 loads with 143.13 loads of pork cuts and 17.00 loads of trim. Pork cutout values: up $1.92.
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