Tuesday Midday Livestock Market Summary - Cattle Futures Firm

GENERAL COMMENTS:

Firm gains in nearby feeder cattle trade Tuesday morning has led to spillover buyer support in live cattle contracts. October through February futures are trading 45 to 55 cents higher, although volume remains sluggish. Spillover softness continues in lean hog futures, although light volume is creating some questions of sustaining support given recent market pressure. December corn is down 1 1/2 at $4.885 and December soybean meal is up $10.10 at $400.3. The Dow Jones Industrial Average is up 109.41 at 34,093.95.

LIVE CATTLE:

Firm gains seen in nearby live cattle trade has helped calm some of the early week jitters, which put pressure on price levels Monday. The focus on moving December contracts above the $187 per cwt price level has helped to add even more support to the entire complex. October live cattle are $0.73 higher at $185.925, December live cattle are $0.75 higher at $187.30, February live cattle are $0.68 higher at $191.325. The spot December contract has moved back above the 40-day moving average, although there is some uncertainty as to just how much additional buyer support may develop through the upcoming weeks, especially with questions surrounding further gains in cash cattle trade. Cash cattle trade remains quiet Tuesday morning with asking prices and bids still hard to pin down. It is likely to be the middle of the week or later before active cash market activity develops.

Boxed beef prices are higher: choice up $0.47 ($305.14) and select up $0.74 ($277.94) with a movement of 92.00 loads (50.28 loads of choice, 21.94 loads of select, 7.68 loads of trim and 12.64 loads of ground beef).

FEEDER CATTLE:

Feeder cattle futures have led the livestock complex higher Tuesday morning. Strong triple-digit gains seen in early 2024 contract months have added to the overall buyer support across the entire complex. October futures remain essentially dead in the water with traders prices only holding single digit gains in very light trade. But most trade volume and interest will continue to be placed on late 2023 and early 2024 contract months. October feeders are $0.03 higher at $248.35, November feeders are $0.85 higher at $250.775 and January feeders are $1.43 higher at $252.95.

LEAN HOGS:

Firm pressure has redeveloped in lean hog futures trade Tuesday morning. Continued commercial selling pressure is testing May lows in the spot month December contract. A move below this price level will indicate new contract lows and create additional spillover selling concerns through the entire complex. December lean hogs are $0.58 lower at $67.725, February lean hogs are $0.95 lower at $72.125 and April lean hogs are $0.88 lower at $79.075. Despite the focus on pork values and potential support in the cash hog market, there is growing concerns that nearby contracts will continue to build downward momentum with December contract testing contract lows set in May, while February prices have already broken through these support levels over the last two sessions. Concern that additional liquidation may develop is still heavy on the minds of many traders.

The projected lean hog index for Oct. 16 is $81.15. Hog prices are not reported Tuesday due to confidentiality on the Daily Direct Morning Hog Report. Pork Cutouts totaled 207.29 loads with 184.70 loads of pork cuts and 22.59 loads of trim. Pork cutout values are up $0.39 at $89.87.