GENERAL COMMENTS:
The livestock complex is trading mixed into Tuesday's noon hour as the live cattle contracts are trading mostly lower but the lean hog and feeder cattle contracts continue to grind higher. Asking prices are noted in the South at $189 but are still not established in the North. December corn is down 5 cents per bushel and January soybean meal is down $4.40. The Dow Jones Industrial Average is down 104.17 points.
LIVE CATTLE:
The live cattle complex is trading mostly lower as the market is on edge, waiting to see what develops in this week's cash cattle market. Still no cash cattle trade has developed, but asking prices are noted in the South at $189 but are still not established in the North. Given that feedlot managers' pens are current and that they were able to trade cattle higher last week, it's likely that will want to see prices trade higher again this week. With that being said, it wouldn't be surprising to see trade delayed until Friday. December live cattle are up $0.02 at $186.52, February live cattle are down $0.50 at $187.20 and April live cattle are down $0.32 at $189.32.
Boxed beef prices are higher: choice up $3.85 ($313.56) and select up $4.37 ($278.11) with a movement of 70 loads (48.63 loads of choice, 10.02 loads of select, zero loads of trim and 11.53 loads of ground beef).
FEEDER CATTLE:
The feeder cattle complex is continuing to trade higher as everyone from cattlemen to traders is ecstatic to see what feeder cattle prices are going to do amid this time in which Mexican cattle imports are going to be restricted. January feeders are up $2.17 at $257.65, March feeders are up $1.87 at $256.20 and April feeders are up $1.75 at $257.27. The market has recovered all of the position lost early in August from the commodity market meltdown and is currently showing no sign of easing up as the market upside potential amid tremendous buyer demand and limited feeder cattle supplies is unmeasurable.
LEAN HOGS:
Even though midday pork cutout values are lower, the lean hog complex is continuing to charge onward and higher as technical support is ample. December lean hogs are up $0.92 at $82.90, February lean hogs are up $1.40 at $87.32 and April lean hogs are up $0.80 at $90.92. The market is currently trading beyond resistance thresholds and unless fundamental support (especially in the form of stronger pork cutout values) becomes stronger, traders may grow skeptical about advancing the contracts any higher.
The projected lean hog index is delayed from the source. Hog prices on the Daily Direct Morning Hog Report average $87.69, ranging from $77.00 to $88.00 on 3,165 head and a five-day rolling average of $86.09. Pork cutouts total 199.80 loads with 181.26 loads of pork cuts and 18.54 loads of trim. Pork cutout values: down $1.54, $91.79.
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