GENERAL COMMENTS:
All in all, the livestock complex is winning as Friday's noon hour nears. All three of the markets are trading higher, which is no small feat given the pressures that the industry had to face earlier this week. December corn is down 3 1/4 cents per bushel and December soybean meal is down $4.40. The Dow Jones Industrial Average is up 249.35 points.
LIVE CATTLE:
The combination of a stronger futures complex mixed with higher midday boxed beef prices is just the news that the live cattle market needed after being pressured earlier this week. With strenuous economic and political pressures sending the contracts lower earlier this week, it's rather encouraging to see the spot December contract flirting with closing above the market's 40-day moving average. The cash cattle market hasn't seen much more trade develop as it's looking like the bulk of the week's business is done with. A single bid of $184 live is currently being offered in Nebraska, but otherwise the market is silent. Southern live deals have been marked at mostly $182, roughly $1 lower than last week's weighted averages. Northern dressed trade has had a range of $288 to $291, $2 lower to $1 higher than the prior week's weighted averages. Some clean-up trade could develop ahead of the day's end, but largely the week's business is done with.
Boxed beef prices are higher: choice up $4.86 ($302.62) and select up $0.43 ($275.20) with a movement of 64 loads (36.91 loads of choice, 11.73 loads of select, 3.70 loads of trim and 11.16 loads of ground beef).
FEEDER CATTLE:
The feeder cattle complex has found some support in Friday's market as nearby corn prices are trending $0.04 lower into Friday's noon hour and as the live cattle contracts lend some support as they trade higher as well. The spot November contract continues to dance alongside the market's 100-day moving average, which keeps cattlemen and traders alike on edge as a close sharply below the threshold could be detrimental for the market and could signal a change in direction. But bull spreaders are hopeful that, by next week, large feeder cattle sales will see better interest from buyers and the unwavering support from strong sales could reassure the futures complex. October feeders are up $0.22 at $247.72, November feeders are up $0.57 at $250.87 and January feeders are up $0.32 at $253.37.
LEAN HOGS:
The lean hog market did a bit of a head-fake move Friday morning as the market began trading lower at the day's start but quickly charged onward and is now entering Friday's noon hour fully higher. October lean hogs are up $1.40 at $82.30, December lean hogs are up $1.10 at $73.37 and February lean hogs are up $1.22 at $77.17. The market is far from any resistance pressure so as long as traders find enough fundamental support in the market and economic/political pressures remain at bay (as much as possible in Friday's environment), the lean hog complex may be able to keep with its upward trek.
The projected lean hog index is delayed from the source. Hog prices on the Daily Direct Morning Hog Report average $74.88, ranging from $67.00 to $76.00 on 6,443 head and a five-day rolling average of $73.56. Pork cutouts total 147.82 loads with 121.66 loads of pork cuts and 26.16 loads of trim. Pork cutout values: up $1.41, $96.39.
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