GENERAL COMMENTS:
Both the live cattle and lean hog contracts were able to rally throughout Tuesday's market as higher boxed beef prices and pork cutout values helped lend traders some reassurance. Meanwhile, the feeder cattle market closed lower as traders took note of the corn market's $0.04 to $0.05 rally. December corn is up 4 1/4 cents per bushel and December soybean meal is up $5.90. The Dow Jones Industrial Average is down 173.18 points.
LIVE CATTLE:
The live cattle complex maintained its fruitful trend through Tuesday's close as the market once again inched higher. With boxed beef prices lending some fundamental support, the market kept the interest of traders through the day's end and the spot December contract even reached a new high for the market's current move. Still no cash cattle trade has developed yet, and asking prices remain elusive. No trade is expected to develop until Thursday or Friday again this week. October live cattle closed $0.70 higher at $184.47, December live cattle closed $0.37 higher at $185.17 and February live cattle closed $0.32 higher at $186.17.
Tuesday's slaughter is estimated at 124,000 head -- 1,000 head less than a week ago and 1,000 head more than a year ago.
Boxed beef prices closed higher: choice up $2.09 ($300.17) and select up $0.77 ($285.30) with a movement of 143 loads (88.99 loads of choice, 26.22 loads of select, 17.27 loads of trim and 10.59 loads of ground beef).
WEDNESDAY'S CATTLE CALL: $1.00 higher. This week's cash cattle market is again going to be a match-up between packers and feedlot managers, but with boxed beef prices trading higher this week and packers still somewhat short-bought, I believe there's a chance that prices could trade steady to $1.00 higher this week.
FEEDER CATTLE:
Try as it might, the feeder cattle market's energy ran out ahead of the day's end as the corn market's $0.04 to $0.05 rally in its nearby contracts sucked the energy out of the feeder market. October feeders closed $0.05 lower at $246.15, November feeders closed $0.22 lower at $244.67 and January feeders closed $0.32 lower at $238.45. But thankfully from a fundamental standpoint, the market remains in a strong position as buyers continue to eagerly purchase feeders and calves, and more than anything today's lower end was traders just giving respect to the corn market's higher end. At Oklahoma National Stockyards in Oklahoma City, Oklahoma, compared to last week feeder steers and steer calves sold $3.00 to $8.00 higher. Feeder heifers over 800 pounds traded $5.00 higher and feeder heifers under 800 pounds sold unevenly steady. Heifer calves sold $3.00 to $8.00 stronger. The CME feeder cattle index 9/30/2024: up $0.19, $247.43.
LEAN HOGS:
After trading lower late last week and early this week, the lean hog complex jumped back into action on Tuesday and its market was able to close fully higher. October lean hogs closed $1.25 higher at $83.50, December lean hogs closed $1.32 higher at $74.60 and February lean hogs closed $1.20 higher at $78.57. Helping the lean hog complex is also the fact that pork cutout values closed and cash prices were higher today too.
Hog prices closed higher on the Daily Direct Afternoon Hog Report, up $1.11 with a weighted average price of $77.79 on 9,870 head. Pork cutouts totaled 315.46 loads with 292.82 loads of pork cuts and 22.63 loads of trim. Pork cutout values: up $0.47, $96.31. Tuesday's slaughter is estimated at 486,000 head -- 1,000 head less than a week ago and 3,000 head more than a year ago. The CME lean hog index 9/27/2024: down $0.02, $84.01.
WEDNESDAY'S HOG CALL: Steady to somewhat higher. Packers were more aggressive in Tuesday's market, but it's not likely that they fulfilled all their needs for the week.
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