GENERAL COMMENTS:
The entire livestock complex is trending higher into Monday afternoon as the market warmly welcomes the onset of cheaper corn. The feeder cattle complex is leading the charge higher as its market has now broken above both the 40-day and 100-day moving averages. March corn is down 7 1/4 cents per bushel and January soybean meal is up $7.30. The Dow Jones Industrial Average is down 331.23 points.
LIVE CATTLE:
After last week's mostly supportive trade, the live cattle complex is again trending higher into Monday afternoon. Helping the market more than anything at this point is that the corn complex is finding a softer bottom to its market which obviously comes as celebratory news to cattle feeders who are facing extremely high cost of grains. The cheaper it becomes for feedlots to finish cattle, the more margin they should be able to secure if cash prices keep trending in the current upward fashion. December live cattle are up $0.07 at $153.42, February live cattle are up $0.35 at $156.22 and April live cattle are up $0.37 at $159.95.
Last week Southern live cattle traded for $153.50 to $155, but mostly at $155, which is fully steady with the previous week's weighted average. Northern dressed cattle traded for $245 to $249, but mostly at $249, which is $4.00 higher than the previous week's weighted average.
Boxed beef prices are lower: choice down $2.69 ($247.24) and select down $1.47 ($223.09) with a movement of 68 loads (39.49 loads of choice, 7.70 loads of select, 13.22 loads of trim and 7.16 loads of ground beef).
FEEDER CATTLE:
With the nearby corn contracts trending $0.05 lower into Monday's noon hour, the feeder cattle market is trading anywhere from 57 to 142 points higher as feeders are loving the idea of cheaper feed prices. The nearby contracts are seeing the biggest gains and current the spot January contract is not only trading above its 40-day moving average, but also above its 100-day moving average. The real question in the feeder cattle complex remains to be: What are fat cattle prices going to do? In order for buyers to justify paying these purchase prices, the output price of fats has to get stronger. January feeders are up $1.40 at $183.85, March feeders are up $1.15 at $186.42 and April feeders are up $0.82 at $189.45.
LEAN HOGS:
As the day has traded on the lean hog complex has grown more and more confident in itself as prices are not only trading higher, but they're breaking through current resistance points. December lean hogs are up $0.10 at $82.52, February lean hogs are up $0.90 at $91.32 and April lean hogs are up $0.37 at $96.20. As hog producers face extremely high feed prices, part of the market's excitement stems from the fact that corn is trending $0.05 lower in its nearby contracts. Additionally, the market could see followed through support in Tuesday's complex if pork cutout values are able to close higher. The midday report shows the carcass up $0.88 as the loin is up $4.08 and the rib is up $4.91 -- two very supportive price jumps.
The projected lean hog index for 12/2/2022 is down $0.08 at $82.79, and the actual index for 12/1/2022 is down $0.37 at $82.87. Hog prices are unavailable on the Daily Direct Morning Hog Report as there hasn't been enough packer participation to break through the threshold of confidently. We can see that 3,232 head have traded and that the market's five-day rolling average sits at $84.99. Pork cutouts total 178.94 loads with 151.48 loads of pork cuts and 27.45 loads of trim. Pork cutout values: up $0.88, $89.82.
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