GENERAL COMMENTS:
The livestock complex is running higher into Monday afternoon as the contracts have gained traders' full interest. Now if fundamental factors stay supportive through closing, the complex stands a strong chance at keeping this momentum into Tuesday. December corn is down 6 1/4 cents per bushel and December soybean meal is up $0.90. The Dow Jones Industrial Average is up 563.90 points.
LIVE CATTLE:
The live cattle complex is charging higher into Monday afternoon as traders finally pay the market the attention it deserves. Helping matters are lower corn prices at noon and higher boxed beef prices. Also, cash cattle are expected to trade stronger again this week. Front-end supplies of market-ready cattle are still extremely thin and if packers are going to continue to run the processing speeds they have been, they'll need to be aggressive buyers again this week. October live cattle are up $0.87 at $147.82, December live cattle are up $1.40 at $149.27, and February live cattle are up $1.20 at $152.30. This Friday the market will see another Cattle on Feed Report, which could be supportive as placements may be lower and marketings should be higher.
Last week Southern live cattle traded for $145, which is $1.00 higher than last week's weighted average, and Northern dressed cattle sold for $232, which is $2.00 higher than last week's weighted average. Last week's negotiated cash cattle trade totaled 75,624 head. Of that 81% (61,443 head) were committed for nearby delivery, while the remaining 19% (14,181 head) were committed for deferred delivery.
Boxed beef prices are higher: choice up $1.71 ($248.69) and select up $5.01 ($221.95) with a movement of 45 loads (25.12 loads of choice, 8.55 loads of select, 7.23 loads of trim and 4.46 loads of ground beef).
FEEDER CATTLE:
The feeder cattle complex is off to a brisk start this week as the market warmly welcomes interest from traders as the onset of weaker corn prices mixed with a supportive/higher trending live cattle complex helps flame feeders higher. November feeders re up $1.67 at $176.45, January feeders are up $2.22 at $177.32 and March feeders are up $2.22 at $178.87. The market has seen mixed interest from feeder cattle buyers as they're wanting to get their orders filled, but for those who are still in need of cattle, the pressuring factor of the economy's weakened state mixed with limited room for error in break-evens doesn't give buyers much comfort.
LEAN HOGS:
The lean hog complex is running vigorously into Monday afternoon as the combination of Friday's higher export report and traders' willingness to invest in the market is sending the contracts noticeably higher. December lean hogs are up $2.22 at $84.47, February lean hogs are up $2.15 at $85.57 and April lean hogs are up $2.30 at $89.25. With hog prices in China showing no signs of weakening, our domestic market is hopeful for the opportunity of more exports. Last week's WASDE report forecasted quarter three and quarter four cash hog prices to be slightly lower, but with the onset of more interest in pork products here domestically and internationally, cash prices may have a chance at performing better than projected.
The projected CME Lean Hog Index is unavailable at this time. Hog prices are lower on the Daily Direct Morning Hog Report, down $2.66 with a weighted average of $84.63, ranging from $82.00 to $96.00 on 3,923 head and a five-day rolling average of $86.45. Pork cutouts total 162.46 loads with 135.34 loads of pork cuts and 27.11 loads of trim. Pork cutout values: up $2.69, $104.55.
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