GENERAL COMMENTS:
The livestock complex is trading mixed into Tuesday's afternoon as the cattle complex celebrates the slightly lower trend that's taking place in the corn market Tuesday, but the lean hog complex is split trading higher and lower. The cash cattle market hasn't seen any action develop yet and given that feedlots are likely to price cattle higher, sizeable trade deals aren't expected to develop until Wednesday or later. December corn is down 5 1/2 cents per bushel and December soybean meal is down $1.30. The Dow Jones Industrial Average is up 300.26 points.
LIVE CATTLE:
Given the recent pressure that has mounded above the live cattle market (a weakened economy, increasingly tensions war reports between Russia/Ukraine and a finicky corn market) the cattle complex is going to need its fundamentals to lead the futures complex higher, if higher prices are going to be in its near future. After the corn market jolted higher throughout Monday's trade, both the live cattle and feeder cattle contracts are trending modestly higher into Tuesday's afternoon as corn prices regress. Helping the market trade higher is also the fact that feedlots are anticipated to trade cattle higher again this week as beef demand has improved from September, and packers are continuing to run aggressive chain speeds. Asking prices of $146 are noted in the South but asking prices in the North are still illusive. It's likely that significant trade doesn't develop until Wednesday, or potentially even Thursday. October live cattle are up $0.80 at $145.50, December live cattle are up $1.25 at $148.25 and February live cattle are up $0.85 at $151.60.
Boxed beef prices are mixed: choice up $2.04 ($246.67) and select down $0.71 ($213.11) with a movement of 85 loads (34.95 loads of choice, 28.92 loads of select, 4.72 loads of trim and 16.81 loads of ground beef).
FEEDER CATTLE:
With the corn complex scaling back after Monday's aggressive push, the feeder cattle contracts are taking back some of the position they lost throughout Monday's market. October feeder cattle are up $2.07 at $174.17, November feeders are up $2.25 at $175.12 and January feeders are up $1.17 at $175.45. The market is undoubtedly feeling more confident as corn prices traipse lower but also as the live cattle contracts trade mildly higher and feedlots are expected to push cash cattle trade higher again this week. The corn market is pulling back ahead of Wednesday's WASDE report, which until that data is unveiled, there's always a chance that the market could shift and change at any second.
LEAN HOGS:
The lean hog contracts are trading mixed into Tuesday's afternoon as the nearby contracts drift mildly lower while the deferred contracts trade somewhat higher. It wouldn't be surprising to see the nearby contracts grow a little stronger as the day trades on if packers continue to support the cash market and push its prices higher. Helping build a case for stronger prices is also that midday pork cutout values are higher, with ham being the biggest market driver Tuesday morning as it's gained $5.67. December lean hogs are down $0.50 at $79.10, February lean hogs are down $0.07 at $80.92 and April lean hogs are up $0.27 at $84.97.
The projected lean hog index for Oct. 10 is down $0.03 at $92.95, and the actual index for Oct. 7 is up $0.33 at $92.98. Hog prices are higher on the Daily Direct Morning Hog Report, up $1.04 with a weighted average of $84.16, ranging from $79.00 to $92.50 on 4,311 head and a five-day rolling average of $87.54. Pork cutouts totaled 187.98 loads with 167.95 loads of pork cuts and 20.02 loads of trim. Pork cutout values: up $1.42, $102.81.
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