GENERAL COMMENTS:
The livestock complex closed mixed with the feeder cattle market lagging behind both the live cattle and lean hog markets. The feeder cattle market was mainly put out of sorts thanks to the bullish corn stalks report which drove corn prices higher and grabbed the feeder cattle market's attention. Early in the day. December corn is up 6 3/4 cents per bushel and December soybean meal is down $2.50. The Dow Jones Industrial Average is up 17.15 points.
LIVE CATTLE:
The live cattle complex was able to round out Monday's market higher thanks to the slight support in which traders lent the marketplace. October live cattle closed $0.02 higher at $183.77, December live cattle closed $0.32 higher at $184.80 and February live cattle closed $0.30 higher at $185.85. Traders supported the complex through the day's end, but only in a mild manner as they need and want to see more fundamental support arise before they aggressively advance the contracts again. Thankfully boxed beef prices did close higher this afternoon -- which will be something that both cattlemen and traders monitor closely throughout the week. Monday's slaughter is estimated at 119,000 head -- 1,000 head more than a week ago and 4,000 head less than a year ago. New showlists appear to be mixed, somewhat higher in Texas, higher in Nebraska/Colorado, but lower in Kansas.
Last week Southern live cattle traded for mostly $185, which is $2.00 higher than the previous week's weighted average, and Northern dressed cattle traded mostly $294, which is $3.00 higher than the previous week's weighted average. Last week's negotiated cash cattle trade totaled 81,235 head. Of that 85% (69,201 head) were committed to the nearby delivery while the remaining 15% (12,034 head) were committed to the deferred delivery.
Boxed beef prices closed higher: choice up $1.39 ($298.08) and select up $2.45 ($284.53) with a movement of 102 loads (65.73 loads of choice, 16.28 loads of select, 5.18 loads of trim and 14.41 loads of ground beef).
TUESDAY'S CATTLE CALL: Steady. Feedlot managers will again price cattle higher this week, but with boxed beef prices teetering, it's likely that prices may just trade steady.
FEEDER CATTLE:
Even though the live cattle complex closed higher, the feeder cattle market simply couldn't muster up the same level of support throughout Monday's trade. October feeders closed $0.87 lower at $246.20, November feeders closed $0.80 lower at $244.90 and January feeders closed $0.82 lower at $238.77. Not helping the feeder cattle complex either was the bullish corn stalks report shared early today which drove nearby corn prices up $0.06. At Joplin Regional Stockyards in Carthage, Missouri, compared to last week and at their midsession point, feeder steers were traded steady to $3.00 higher and feeder heifers were selling steady to $8.00 higher. Feeder cattle supply over 600 pounds was 54%. The CME feeder cattle index 9/27/2024: up $1.71, $247.24.
LEAN HOGS:
Despite a couple of the nearby contracts closing slightly lower, the lean hog market rallied through Monday's end. You'll note that the December 2024 and February 2025 contracts closed lower which was likely driven down by the presumption from the Quarterly Hogs and Pigs report that market-ready supplies of hogs weighing 180 pounds or more are significantly greater than a year ago. But beyond that, the market was well supported, and the afternoon carcass price was even able to close higher which was largely because of the $2.44 jump in the belly. Hog prices closed higher on the Daily Direct Afternoon Hog Report, up $1.57 with a weighted average price of $76.68, ranging from $73.00 to $77.75 on 2,855 head and a five-day rolling average of $76.67. Pork cutouts totaled 250.36 loads with 222.75 loads of pork cuts and 27.62 loads of trim. Pork cutout values: up $0.09, $95.84. Monday's slaughter is estimated at 485,000 head -- 6,000 head more than a week ago and 2,000 head less than a year ago. The CME lean hog index 9/26/2024: down $0.04, $84.03.
TUESDAY'S HOG CALL: Higher. With pork cutout values closing higher and packers showing slight interest in Monday's cash market it likely means that they'll be even more aggressive on Tuesday.
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