Tuesday, October 1, 2024

Tuesday Midday Livestock Market Summary - Traders Push the Complex Higher

GENERAL COMMENTS:

The livestock complex is trading aggressively into Tuesday's noon hour as all three of the markets are trading higher. Still no bids or asking prices have been posted for the cash cattle market. December corn is up 2 1/4 cents per bushel and December soybean meal is up $6.40. The Dow Jones Industrial Average is down 161.54 points.

LIVE CATTLE:

With Monday's afternoon boxed beef prices closing higher and midday boxed beef prices higher again today, trades are seeing fundamental support which is giving them the confidence to again push the live cattle complex higher. October live cattle are up $1.02 at $184.80, December live cattle are up $0.87 at $185.67 and February live cattle are up $0.70 at $186.55. The spot December live cattle contract is inching higher and again pushing into resistance territory but at this point, fundamental support seems strong enough for traders to confidently pressure those resistance price points. Still no cash cattle trade has developed, and it don't likely until Thursday or Friday. No bids or asking prices have been posted yet.

Boxed beef prices are higher: choice up $2.10 ($300.18) and select up $0.19 ($284.72) with a movement of 74 loads (41.82 loads of choice, 18.37 loads of select, 6.88 loads of trim and 7.00 loads of ground beef).

FEEDER CATTLE:

Even though the nearby corn contracts are trading $0.03 to $0.04 higher, the feeder cattle market isn't concerned as the live cattle complex is lending support which is allowing traders to confidently push feeders higher into the day's noon hour. October feeders are up $0.82 at $247.02, November feeders are up $0.87 at $245.80 and January feeders are up $0.57 at $239.35. Some of the furthest deferred feeder cattle contracts are trading slightly lower, but largely, the market is trading with ease as the live cattle complex is again leading the way and thankfully feeder cattle demand is still holding strong, especially in the lightweight ranges of calves as buyers are looking for wheat cattle.

LEAN HOGS:

With midday pork cutout values higher, the lean hog complex is rocking and rolling into Tuesday's noon hour aggressively. October lean hogs are up $1.20 at $83.45, December lean hogs are up $1.40 at $74.67 and February lean hogs are up $1.32 at $78.70. Following the last couple of days of lower closes, the market has room to again trade higher without coming up against resistance immediately which is why traders feel confident rallying the market amid stronger pork demand.

The projected lean hog index for 9/30/2024 is up $0.12 at $84.13, and the actual index for 9/27/2024 is down $0.02 at $84.01. Hog prices are higher on the Daily Direct Morning Hog Report, up $1.57 with a weighted average price of $77.99, ranging from $72.00 to $79.00 on 6,790 head and a five-day rolling average of $77.22. Pork cutouts total 193.28 loads with 181.96 loads of pork cuts and 11.32 loads of trim. Pork cutout values: up $1.51, $97.35.



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