GENERAL COMMENTS:
Stronger trader interest is helping advance the entire livestock complex as all three of the markets are trading higher into Wednesday afternoon. No cash cattle trade has developed, but asking prices are now noted in the South at $187. December corn is up 3 1/4 cents per bushel and December soybean meal is down $6.60. The Dow Jones Industrial Average is up 11.14 points.
LIVE CATTLE:
The live cattle complex is charging full steam ahead into Wednesday's noon hour as the market is pushing its nearby contracts $1.00 to $2.00 higher. With this type of technical momentum, feedlot managers are hoping to see the cash cattle complex trade higher again this week. It's been helpful earlier this week that boxed beef prices have traded higher, and even though today's midday prices are mixed, traders see it's supportive that at least choice cuts are up. Today's breakout move is quite impressive and puts the spot December contract right in line with where prices were before the equity meltdown early in August. Still no cash cattle sales have been reported, but asking prices are noted now in the South at $187. October live cattle are up $2.10 at $186.57, December live cattle are up $2.12 at $187.30 and February live cattle are up $1.77 at $187.97.
Boxed beef prices are mixed: choice up $0.08 ($300.25) and select down $1.57 ($283.73) with a movement of 118 loads (83.60 loads of choice, 15.87 loads of select, zero loads of trim and 18.27 loads of ground beef).
FEEDER CATTLE:
The feeder cattle complex is pushing even more of an aggressive rally than the live cattle complex as its nearby contracts are currently trading anywhere from $2.00 to $3.00 higher. The spot November contract is just a little over $2.00 away from hitting the market's 100-day moving average, which would be an impressive threshold to conquer. That's likely out of reach for today's trade but the contract is nearing that marker. October feeders are up $2.82 at $248.97, November feeder cattle are up $3.22 at $247.87 and January feeders are up $2.85 at $241.30.
LEAN HOGS:
The lean hog complex is also rallying into Wednesday afternoon despite the fact that midday pork cutout values are slightly lower. More than anything traders seem to be willing to advance the lean hog complex as bullish, supportive tones have taken over the livestock complex today. However, without consumer interest and demand in terms of pork buying, the lean hog complex may not be able to maintain its higher trend for long. It will be imperative to monitor the afternoon's cutout price. October lean hogs are up $0.65 at $84.15, December lean hogs are up $1.40 at $76.00 and February lean hogs are up $1.07 at $79.65.
The projected lean hog index for 10/1/2024 is up $0.32 at $84.45, and the actual index for 9/30/2024 is up $0.12 at $84.13. Hog prices are lower on the Daily Direct Morning Hog Report, down $4.64 with a weighted average price of $73.35, ranging from $72.00 to $76.75 on 714 head and a five-day rolling average of $77.30. Pork cutouts total 152.17 loads with 138.85 loads of pork cuts and 13.32 loads of trim. Pork cutout values: down $0.38, $95.93.
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