GENERAL COMMENTS:
It's another mixed day for the livestock complex as the cattle contracts are trading higher but the lean hog complex isn't seeing the same support. Some early bids have been offered in the South at $150, but at this point feedlots are letting them sit. December corn is down 2 3/4 cents per bushel and December soybean meal is down $5.10. The Dow Jones Industrial Average is down 5.54 points.
LIVE CATTLE:
The live cattle complex is posting a tremendous day thus far as the contracts have stepped out into Wednesday's market with an eager and aggressive tone, and hopefully their momentum will incentivize feedlots to hold cash prices at least steady. December live cattle are up $0.65 at $151.92, February live cattle are up $1.10 ta $154.17 and April live cattle are up $0.92 at $157.65. The spot February contract is trading well above both its 40-day and 100-day moving average as the market leans into the noon hour -- and if prices are able to close with this much support, one could argue that a short-term bottom is forming in the chart. Meanwhile, throughout the countryside, packers are casting early bids of $150 in both Kansas and Texas where asking prices remain firm at $151 to $152 in the South. The North has yet to see any bids offered, and their asking prices are set around $245 plus. Business could develop Wednesday afternoon, or it could hold off until sometime Thursday -- as of right now it's still anyone's ball game.
Boxed beef prices are mixed: choice down $0.33 ($258.03) and select up $0.48 ($232.24) with a movement of 112 loads (76.91 loads of choice, 22.40 loads of select, 3.31 loads of trim and 9.05 loads of ground beef).
FEEDER CATTLE:
The feeder cattle contracts are heading into Wednesday's afternoon mildly higher as the market looks to recover some position after Tuesday's lower blow. With the nearby corn contracts only trading $0.01 to $0.02 lower, feeders aren't pushing much of a rally as there's enough volatility laced throughout the complex to keep traders cautious even on a good day. January feeders are up $0.20 at $177.22, March feeders are up $0.32 at $180.12 and April feeders are up $0.37 at $183.40.
LEAN HOGS:
The lean hog complex is trading lower as the market grapples with the ramifications of lower pork cutout values. Midday prices only mean so much, but if Wednesday's afternoon price closes lower again, the market could be hard pressed to trade lower throughout Thursday. December lean hogs are down $0.37 at $84.97, February lean hogs are down $0.70 at $89.37 and April lean hogs are down $0.42 at $95.07. Wednesday's morning cash prices are higher, and the afternoon is expected to trade more hogs and higher prices too, which could mildly support the futures market but heading into Thursday the week's export data is going to be extremely important to review.
The projected lean hog index for Nov. 15 is down $0.27 at $88.22 and the actual index for Nov. 14 is down $0.16 at $88.49. Hog prices are higher on the Daily Direct Morning Hog Report, up $1.07 with a weighted average of $85.52, ranging from $78.00 to $91.00 on 5,752 head and a five-day rolling average of $84.66. Pork cutouts total 185.18 loads with 155.07 loads of pork cuts and 30.12 loads of trim. Pork cutout values: down $1.12, $94.58.
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