It looked as if it was going to be another painful Tuesday for cattle contracts, but as the noon hour approaches cattle contracts are showing mixed support while the lean hog market rallies ahead. December corn is down 1 3/4 cents per bushel and December soybean meal is up $0.30. The Dow Jones Industrial Average is up 11.14 points and NASDAQ is up 7.80 points.
LIVE CATTLE
Last week at this time live cattle contract were all lower, boxed beef prices were as good as they are this Tuesday and the cash market was itching to sell higher. This time around, the live cattle complex flirts with the idea of trading higher, boxed beef prices are still great and cash cattle sellers are even more enthusiastic about this week than they were last week. It's as if we sit at the circus - the magician holding the cattle market in his hat, and we know that only two things are possible. He could pull out steady/higher prices all supported by excellent beef demand, phenomenal boxed beef prices, and a very aggressive slaughter. Or he could pull out a market correct, which in all due respect is equally as qualifying. The market continues to trade, and the magician continues to twirl his hand above his hat.
December live cattle are down $0.45 at $119.62, February live cattle are up $0.15 at $124.75 and April live cattle are up $0.22 at $125.80. Cash trade still remains quiet, waiting to see where the board lands and letting packers know that feeders are eager for higher prices this week.
Midday boxed beef prices are higher: choice up $1.81 ($236.62) and select is up $1.10 ($211.48) with a midday movement of 59 loads (34.82 loads of choice, 11.68 loads of select, 4.14 loads of trim and 8.78 loads of ground beef).
FEEDER CATTLE
Tick-tock, tick-tock, more time will have passed before the answer comes but it looks as if, with the noon hour approaching, feeder cattle contracts may be able to shake off some of the Tuesday blues and trade higher after the noon hour. The spot November contract is down $0.97 at $148.10, January feeders are $0.07 higher at $146.07 and March feeders are trading $0.35 higher at $145.65. If live cattle contracts can heat up after the noon hour, feeder cattle contracts could be able to muster up the same strength.
LEAN HOGS
Whistling Dixie maybe pigs can fly! December lean hogs are trading a lofty $3.00 higher at $67.52, February lean hogs aren't far behind trading $2.45 higher at $74.35 and April lean hogs are up $1.95 at $80.60. Pork cutouts have been higher the last two days which could be helping stimulate some of the market. The biggest achievement will be if the sector can keep its gains throughout the rest of the week.
The projected lean hog index for 11/04/19 is down $0.52 at $60.36, and the actual index for 11/01/19 came to $60.88, down $1.22. Prices are lower on the National Direct Morning Hog Report, down $0.18 with a weighted average of $46.63, ranging from $43.00 to $47.34 on 8,424 head sold and a five-day rolling average of $48.58. Pork cutouts totaled 227.75 loads with 204.12 loads of pork cuts and 23.63 loads of trim. Pork cutout values are $1.82 higher $80.57.
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