General Comments
Thankfully as Wednesday has moved closer to the noon hour more support has developed in the live cattle complex but still the pressure from higher corn prices is sending feeder cattle contracts lower. The lean hog market continues to trade sideways needing some direction to help dictation where the market should trend next. Thursday's export report will be highly sought-after gain especially for hog enthusiasts, and hope that domestic demand continues through the fourth quarter is high. December corn is up 3 1/2 cents per bushel and December soybean meal is up $5.30. The Dow Jones Industrial Average is up 417.28 points and NASDAQ is up 170.95 points.
LIVE CATTLE
Feeders are thankful to see the support rallying throughout the live cattle market as they aim to move the cash cattle market higher again this week. October live cattle are up $0.75 at $109.95, December live cattle are up $0.80 at $112.77 and February live cattle are up $0.50 at $115.85. Cash cattle trade has yet to spark any interest, but there are some bids on the table at $168 in Nebraska. Northern feedlots have yet to indicate where their asking prices sit, but Southern cattle are priced around $110.
The Fed Cattle Exchange Auction listed a total of 470 head (only 3 lots in all), of which 367 head actually sold, 103 head were listed as unsold, and none were listed as PO (Passed Offer). The state by state breakdown looks like this: Texas 367 total head (2 lots), with all 367 head sold at $108.50; Nebraska 103 total head (1 lot) of which none sold. All cattle were set for 1-17 day delivery.
Boxed beef prices are mixed: choice up $0.89 ($217.13) and select down $0.89 ($205.95) with a movement of 95 loads (63.19 loads of choice, 14.88 loads of select, 5.62 loads of trim and 11.74 loads of ground beef).
FEEDER CATTLE
Corn prices continue to rally reaching levels not seen since late February and the feeder cattle contracts aren't not taking kindly to the thought of higher feed prices. Dropping below $140.00, feeder cattle contracts wane lower despite hopes that for the upcoming fall rally that the market would be robust and confident. October feeders are down $0.22 at $137.90, November feeders are down $0.40 at $137.12 and January feeders are down $0.77 at $135.37.
LEAN HOGS
Nearby support as moved into the lean hog market as the afternoon quickly approaches. October lean hogs are up $0.55 at $76.87, December lean hogs are up $0.37 at $64.25 and February lean hogs are down $0.02 at $68.92. Even though recent export reports have been disappointing for the lean hog market as there were high hopes that with the ASF cases in Germany that US pork would be in high demand - domestic demand has saved the market from crashing lower.
Hog prices are lower on the National Direct Morning Hog Report, down $0.27 with a weighted average of $63.96, ranging from $60.00 to $66.25 on 5,510 head and a five-day rolling average of $63.77. Pork cutouts total 177.74 loads with 161.42 loads of pork cuts and 16.31 loads of trim. Pork cutout values: up $3.68, $96.23.
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