Monday Closing Livestock Market Summary - Monday was ... a Monday

GENERAL COMMENTS:

The livestock complex fared the start of the week as expected. Live cattle contracts keep showing bits of light, feeder cattle contracts are in the same downward trend as last week and the lean hog sector struggles the most. Hog prices are up $0.53 on the National Direct Afternoon Hog Report, with a weighted average of $49.19. December corn is up 2 1/4 cents per bushel and December soybean meal is down $1.60. The Dow Jones Industrial Average is down 96.44 points and NASDAQ is down 26.18 points.

LIVE CATTLE:

Live cattle contracts closed the day mixed, up $0.90 to down $0.52. The fat cattle market will be one to watch this week. The stars are aligning for another strong week of cash trade and the future's market -- though hesitant and skeptical -- is positioned to follow a cash cattle bump. It's unlikely that the cash cattle market will keep this vigor throughout the rest of the year with boxed beef prices looking for a seasonal low and two major holidays right around the corner that affect trading and people's attentiveness to the marketplace. The December live cattle contract closed at $111.20, up $0.42. Asking prices of $112 have been set in parts of Western Nebraska and Colorado.

Monday afternoon boxed beef prices are lower: choice down $0.87 ($211.09) and select down $1.01 ($185.91) with a moderate offering of 119 total loads (53.64 loads of choice cuts, 33.56 loads of select cuts, 19.34 loads of trim and 12.34 loads of ground beef).

TUESDAY'S CASH CATTLE CALL: $1 to $2 higher. Since last week's fattest live cattle prices were seen later in the week, it is unlikely that feedlots would be itching to sell pens early in the week. However, when cattle do sell it will probably be for more money than last week.

FEEDER CATTLE:

Feeder cattle markers closed moderately lower, down anywhere from $0.27 to $1.30. The November feeder cattle contract closed at $140.92, which is still higher than both the 100-day and 40-day moving averages. Knowing that a big storm of cattle will be walking across the sales in a week dampens the momentum the board could have. CME feeder cattle index 10/04/19: $144.43, up $0.84.

LEAN HOGS:

Export opportunities are in sight as Reuters reports that JBS will remove ractopamine, a growth drug banned by Beijing from its U.S. hog supply. This will give the company an opportunity to export into markets largely affected by the ongoing crisis with African swine fever. As more trade deals are discussed this week with China, the hog market may have enough export opportunity to off-set its growing supply. Lean hog futures closed sharply lower, down anywhere from $0.22 to $3.00. December lean hogs closed at $64.25. Though new trade deals are prayed for, it could take a long time for the money added into the market to trickle down the hog producer's themselves. Pork cutout: up $2.58 at $77.75. CME Lean Hog Index for 10/03/19: $59.23, up $0.51.

TUESDAY'S CASH HOG CALL: $1 lower. Until a clear and through plan is set in stone with export markets, large supply is going to continue to weigh down the lean hog market.

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