GENERAL COMMENTS:
Monday wasn't an overly exciting day as the livestock complex traded gingerly and kept its advancements and regressions modest. As the week advances and hog enthusiasts see if this week's export report yields exciting news, and feedlots see how aggressive packers are going to be, trade could become more vigorous. Prices were lower on the National Direct Afternoon Hog Report, down $0.72 with a weighted average of $63.98 on 5,183 head. December corn is up 1 1/2 cents per bushel and December soybean meal is down $4.70. The Dow Jones Industrial Average is up 410.10 points and NASDAQ is up 203.97 points.
LIVE CATTLE:
Live cattle contracts closed mostly higher, fueled by last week's robust cash cattle market. October live cattle closed $0.37 higher at $107.95, December live cattle closed $0.25 higher at $111.65 and February live cattle closed $0.42 higher at $115.02. Monday's cash cattle trade was as expected -- painfully quiet as feeders are confident in pricing cattle higher again this week and packers know bids won't be accepted this early in the week. If boxed beef prices scale higher like they did last week, packers will be more apt (than if they don't) to consider paying higher prices. Monday's slaughter is estimated at 118,000 head -- 2,000 head less than a week ago and 2,000 head more than a year ago.
Boxed beef prices closed lower: choice down $1.62 ($217.72) and select down $0.56 ($206.42) with a movement of 148 loads (85.38 loads of choice, 17.40 loads of select, 10.58 loads of trim and 34.32 loads of ground beef).
TUESDAY'S CASH CATTLE CALL: Steady to $1.00 higher. Given that the last two weeks have treated feeders exceptionally well as they've waited until later in the week to market their cattle, Tuesday will most likely be another quiet day.
FEEDER CATTLE:
Feeder cattle contracts closed mixed with most of the contracts higher, other than those from March 2021 to May 2021. Even with the corn market closing $0.01 to $0.02 higher per bushel, feeder cattle futures followed live cattle contracts higher. Until the fall run truly gets underway, the feeder cattle complex will trade in limbo, looking for support both on the board and throughout the countryside. October feeder cattle closed $0.60 higher at $140.92, November feeders closed $0.95 higher at $141.10 and January feeders closed $0.32 higher at $139.15. At Oklahoma National Stockyards in Oklahoma City, Oklahoma, compared to a week ago, feeder steers sold $2.00 to $3.00 higher and feeder heifers sold steady to $1.00 stronger. There was no comparison on steer and heifer calves due to a limited test. The CME feeder cattle index 9/25/2020: down $0.36, $142.23.
LEAN HOGS:
The lean hog market closed mostly higher even though some nearby contracts fought moderate resistance. October lean hogs closed $0.95 higher at $72.70, December lean hogs closed $0.40 lower at $64.02 and February lean hogs closed $0.77 lower at $68.70. The cash market closed slightly lower, but pork demand continues to be fueled as the market's cutout value closed $2.00 higher. If Thursday's export report can yield a prosperous showing, the market's momentum could rally again. Pork cutouts totaled 310.79 loads with 280.61 loads of pork cuts and 30.18 loads of trim. Pork cutout values: up $2.07, $93.39. Monday's slaughter is estimated at 489,000 head -- 11,000 heard more than a week ago and 4,000 head more than a year ago. Friday's hog slaughter was revised to 462,000 head, and Saturday's hog slaughter was revised to 220,000 head. The CME lean hog index 9/24/2020: up $0.83, $74.53.
TUESDAY'S CASH HOG CALL: Steady. Packers have been adamant about buying hogs and securing supplies; at some point prices have to veer to steady, if not to lower, levels.
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