GENERAL COMMENTS:
The livestock complex is trending lower into Tuesday's afternoon as traders seem cautious of supporting the contracts amid Tuesday's midterm elections. Both pork and beef prices are higher at noon, which could help stimulate strong interest in the cash markets later today or later this week. December corn is down 5 1/2 cents per bushel and December soybean meal is up $2.40. The Dow Jones Industrial Average is up 504.36 points.
LIVE CATTLE:
Tuesday started with strong intentions as the spot December contract opened above Monday's close, and more importantly, last week's resistance of $152.77. However, as the market is now trading lower in Tuesday's second half, the focus point shifts to whether or not the market will close above that $152.77 threshold. At midday, boxed beef prices are higher and it's likely that the afternoon will again see a strong close in boxes, and cattle are estimated to process around 127,000 to 128,000 head Tuesday, which would bode well for feedlots as opposed to Monday's slimmer slaughter of 123,000 head. The cash cattle market hasn't seen any interest develop yet and it's likely again this week that trade won't develop until late Wednesday or Thursday. Asking prices in the South are noted at $152, but are still undeveloped in the North. December live cattle are down $0.32 at $152.77, February live cattle are down $0.50 at $154.52, and April live cattle are down $0.67 at $157.87.
Boxed beef prices are higher: choice up $1.21 ($265.76) and select up $0.93 ($236.85) with a movement of 80 loads (53.69 loads of choice, 18.93 loads of select, zero loads of trim and 7.59 loads of ground beef).
FEEDER CATTLE:
You'd think that, with the corn complex trading as much as $0.05 lower into the day's afternoon, feeders would be trading higher, but with the midterm elections consuming most of the day's interest and live cattle trading lower, feeder cattle are again pressuring their 40-day moving average as they drift downward. January feeders down $0.85 at $179.07, March feeders are down $0.80 at $181.45 and April feeders are down $0.70 at $184.52.
LEAN HOGS:
The lean hog complex is finally seeing some support in its cash market and it also is coming as the sector is also seeing modest support in cutouts. Now it's too early to tell whether or not the day's afternoon cutout prices will close higher (which is what really matters) but a higher price at noon doesn't hurt anything. Along with the other livestock contracts, the lean hog market is trading lower as everyone's focus lays on today's midterm election. December lean hogs are down $1.67 at $85.37, February lean hogs are down $0.80 at $88.25 and April lean hogs are down $0.30 at $94.05.
The projected lean hog index for Nov. 7 is down $0.60 at $90.28, and the actual index for Nov. 4 is down $0.57 at $90.88. Hog prices are higher on the Daily Direct Morning Hog Report, up $3.43 with a weighted average of $86.11, ranging from $83.00 to $91.00 on 4,747 head and a five-day rolling average of $85.51. 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, $98.64.
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