Strong gains have redeveloped late Tuesday morning despite the sluggish early morning activity across most contracts. This overall buyer support is primarily seen in cattle futures with nearby contracts holding triple digit gains. Trade volume remains moderate at best with many traders focusing on end of the month positioning opportunities. Corn prices are lower in light trade. December corn futures are 2 cents per bushel lower. Stock markets are higher in light trade. The Dow Jones is 14 points higher while Nasdaq is up 27 points.
Strong gains have redeveloped across the live cattle complex with traders focusing on firm fundamental and technical support at the end of the month. The ability to hold these recent market gains through the end of October would not only create strong underlying buyer support midweek as traders focus on the month of November. But this would also impact additional fundamental market expectations for both cash cattle trade at the end of the week and boxed beef values. Cash cattle markets are still quiet Tuesday morning with bids and asking prices still generally undefined. Feedlot managers are expected to remain extremely aggressive following the sharp cash market rally and firm follow through futures market support early this week. Bids may not be seen until Wednesday or later, and many feeders are hesitant to state asking prices too early. Active trade will likely be pushed off until the second half of the week, and most likely sometime late Thursday or Friday. Beef cut-outs at midday are higher, $0.37 higher (select) and up $2.84 per cwt (choice) with light movement of 74 total loads reported (36 loads of choice cuts, 19 loads of select cuts, 8 loads of trimmings, 11 loads of ground beef).
Strong follow through buyer support is expected to hold following renewed commercial trade activity moving back into the market Tuesday morning. January and March futures have led the complex higher, holding gains of $1 to $1.50 per cwt through morning trade. The expectation that traders are focusing on additional strong buyer support across live cattle trade is helping to bring additional buyer support to the market Tuesday.
Strong buyer support has quickly moved into nearby lean hog futures trade with December contracts holding a $1 per cwt gain at midday Tuesday. This end of the month buyer activity may help to draw additional longer term support into the entire complex. Despite the support in December and February futures, the rest of the market remains stuck in a narrow, but positive range with prices steady to 15 cents per cwt higher at midday. Sluggish activity is expected to be seen through the remainder of the Tuesday session. Cash prices are higher on the National Direct morning cash hog report. The weighted average price added $0.11 at $64.91 per cwt with the range from $58.00 to $65.36 on 5,678 head reported sold. Cash prices are higher on the Iowa/Minnesota Direct morning cash hog report. The weighted average price added $0.10 at $64.75 per cwt with the range from $64.00 to $65.00 on 1,020 head reported sold. The National Pork Plant Report is unavailable at this time due to packer submission problems Tuesday morning. Lean hog index for 10/27 is at $69.09 up $0.15 with a projected two-day index of $69.08, down $0.01.