Live cattle exhibit mixed prices with futures in a sideways trading pattern. Feeder cattle are making a valiant effort at regaining the losses of Tuesday. The market seems primed to move higher over a period of time, but this will not happen quickly. Chart resistance is about $2 above current levels, and if achieved, would set up a breakout to the upside. Hogs tried to roll higher following the pattern of the past two weeks in closer months, but futures seem to have run out of steam. Corn is 2 cents lower. The Dow is up 363 points with the Nasdaq up 172 points.
This is the last trading day for October with futures surging $1.95 into the close, reaching $115.85. December will take over the spotlight and is trading at the low end of the trading range established since Oct. 10. Cash cattle show no activity with bids running $112-$114 and asking prices at $118. The Fed Cattle Exchange Auction Wednesday listed a mere 229 head, all for Kansas with no cattle sold, 229 listed as unsold and none listed as PO (passed offer). Boxed beef cut-outs are higher at midday. Choice are $0.22 higher with select up $1.21 with movement of 82 loads reported (58 loads of choice cuts, 15 loads of select cuts, and 9 loads of ground beef).
Feeder cattle futures are making a run higher, posting triple-digit gains in November-March contracts. It will take more buying from traders to eliminate the losses of Tuesday, but an effort seems to be underway. Technically, the market continues to struggle.
December continues to hold slightly higher, but has been unable to keep earlier gains with futures about $1 off the highs. Deferred contracts are lower as spreading continues. Cash prices on the National Direct morning cash report showed the average price $0.36 lower at $57.63 with a range of $52-$60 on 9,745 head reported sold. The National Pork Plant report posted 181 loads selling. Pork carcass values were down $1.06 at $76.61 per cwt. Lean hog index for 10.29 is $63.93, down $0.23, with a projected two-day index of $63.90, down $0.03.