GENERAL COMMENTS:
All three of the livestock contracts are trading higher into Tuesday's afternoon as the market has been met with ample trader interest. The cash cattle market hasn't seen bids or asking prices published yet, but trade isn't expected to develop until Wednesday or later. December corn is up 1/2 cent per bushel and December soybean meal is down $3.10. The Dow Jones Industrial Average is up 32.85 points.
LIVE CATTLE:
The live cattle complex is trading fully higher into Tuesday's noon hour as the market is currently well supported by traders. The spot December contract was trading above its 40-day moving average earlier this morning, but traders quickly backed the contract below that threshold as they aren't confident that there's enough support fundamentally backing that kind of an aggressive technical leap. There's a chance that market could see the contract jump above that threshold later this week if cash cattle prices were to trade steady/somewhat higher -- but the problem about later this week is that Friday's Cattle on Feed report will likely cause traders to safety up and become more cautious in their demeanor. October live cattle are up $1.10 at $178.32, December live cattle are up $1.20 at $179.55 and February live cattle are up $1.07 at $180.55. Still no developments have surfaced in the cash cattle market and it's not likely that any trade will develop ahead of Wednesday at the absolute earliest.
Boxed beef prices are mixed: choice down $0.89 ($303.68) and select up $0.35 ($292.49) with a movement of 106 loads (71.15 loads of choice, 16.41 loads of select, 10.50 loads of trim and 8.31 loads of ground beef).
FEEDER CATTLE:
The feeder cattle complex is also trading higher as traders appreciate the spill over support that's currently coming from the live cattle market's higher trend. October feeders are up $1.60 at $240.60, November feeders are up $2.20 at $237.77 and January feeders are up $2.10 at $232.77. Like the live cattle complex, the feeder cattle market's 40-day moving average remains a hurdle in which traders are leery to attempt to jump. If some strong fundamental support comes into play later this week there's a chance that the complex could conquer that threshold, but currently it appears to remain daunting for traders.
LEAN HOGS:
The lean hog complex is also trading higher as the market continues to rally off Monday's impressive move. October lean hogs are up $1.57 at $81.50, December lean hogs are up $1.40 at $73.60 and February lean hogs are up $0.90 at $76.57. Even with midday pork cutout values lower, traders are electing to advance the complex as technical support is more than sufficient enough at the time to push the market higher. Even so, traders will be closely monitoring closing pork cutout values as demand remains a key driver of the market.
The projected lean hog index for 9/16/2024 is down $0.16 at $84.22 and the actual index for 9/13/2024 is down $0.49 at $84.38. Hog prices are higher on the Daily Direct Morning Hog Report, up $1.74 with a weighted average price of $76.74, ranging from $75.00 to $78.00 on 4,735 head and a five-day rolling average of $76.55. Pork cutouts total 152.17 loads with 144.09 loads of pork cuts and 8.08 loads of trim. Pork cutout values: down $0.27, $93.95.
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