GENERAL COMMENTS:
The cattle contracts are trading higher into Tuesday's afternoon as the market finds comfort in slightly cheaper corn prices and assumes that this week's cash sector will trade steady, if not higher again this week. The lean hog complex is teetering but trading mostly lower as the market longs for support and hopes to see more in afternoon pork cutout values. March corn is down 1 1/2 cents per bushel and January soybean meal is down $4.20. The Dow Jones Industrial Average is down 116.52 points.
LIVE CATTLE:
The live cattle complex is trading higher into Tuesday's afternoon as the market clings to the support that's been driving the cash sector higher. December live cattle are up $0.02 at $152.60, February live cattle are up $0.20 at $154.87 and April live cattle are up $0.10 at $158.55. The cash cattle market hasn't seen any business develop yet and it's not likely that the market sees any real interest until Wednesday, or potentially Thursday if feedlots accomplish pushing this week's market higher again. Early asking prices in the South are noted at $156 to $157 in the South but are still unestablished in the North. If the contracts are able to close higher come Tuesday's end, the market could trade favorably into Wednesday's market as it sees both technical and fundamental support.
Boxed beef prices are lower: choice down $1.18 ($253.35) and select down $1.99 ($226.54) with a movement of 82 loads (44.02 loads of choice, 16.75 loads of select, 9.64 loads of trim and 11.21 loads of ground beef).
FEEDER CATTLE:
The feeder cattle complex is attempting to find support in Tuesday's market as the complex leans on the live cattle market's slightly higher trade and finds comfort in slightly lower grain prices. January feeders are up $0.67 at $177.55, March feeders are up $0.47 at $181.00 and April feeders are up $0.37 at $184.77. It's also helping that Monday's CME feeder cattle index closed $3.56 higher, proving that buyers are looking to the market's auctions and trying to find deals where they can make money and continue to participate.
LEAN HOGS:
The lean hog complex has traded back and forth throughout Tuesday's market, trying to decide if it should trade higher or lower. At this point, the market is trading mostly lower into Tuesday's afternoon as the market looks at cheaper pork cutout values at noon, and only modest interest in the cash market. One would think that, with Monday's sharp decline, which led prices to close at the lowest point they've been at in mid-October, the complex would trade steady or somewhat higher, but the lack of demand keeps the market treading lower. December lean hogs are up $0.42 at $81.02, February lean hogs are down $0.10 at $84.65 and April lean hogs are down $0.42 at $90.07.
The projected lean hog index for Nov. 28 is down $0.42 at $84.12, and the actual index for Nov. 25 is down $0.93 at $84.63. Hog prices are higher on the Daily Direct Morning Hog Report, up $0.31 with a weighted average of $82.04, ranging from $76.50 to $87.50 on 6,140 head and a five-day rolling average of $82.00. Pork cutouts total 173.65 loads with 148.38 loads of pork cuts and 25.27 loads of trim. Pork cutout values: down $0.75, $88.77.
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