GENERAL COMMENTS:
The livestock markets are back to rallying as the cattle contracts are no longer up against immediate resistance pressure, and the lean hogs really seem unshakeable. No new cash cattle trade has developed, but bids are on the table in Nebraska. December corn is up 7 1/4 cents per bushel and December soybean meal is up $0.50. The Dow Jones Industrial Average is down 136.88 points and the NASDAQ is down 239.76 points.
LIVE CATTLE:
The live cattle complex is back to trading higher as traders are again finding support in the market's slightly higher cash cattle trade. It's unlikely that traders will challenge the market's resistance at $240 ahead of the day's close unless something wild and dramatic develops in the fed cash cattle market. But at this point, it's looking like some more trade could develop, but prices may hold steady with the week's trend. So far this week Southern live cattle have traded at mostly $242, which is $2.00 higher than last week's weighted average and Northern dressed cattle have traded at mostly $385, which is $1.00 lower than last week's weighted average. Bids are currently on the table in Nebraska at $245 live and $385 dressed. Asking prices are around $245 in the South, and around $390 in the North.
Boxed beef prices are mixed: choice down $1.22 ($413.19) and select up $3.55 ($389.39) with a movement of 84 loads (64.51 loads of choice, 5.18 loads of select, 6.18 loads of trim and 8.36 loads of ground beef).
FEEDER CATTLE:
Following Thursday's lower close, the feeder cattle complex is back to trading higher as traders are no longer up against immediate resistance levels. September feeders are up $0.47 at $362.17, October feeders are up $0.20 at $361.77 and November feeders are up $0.72 at $360.75. Demand in the countryside remains incredibly strong, so today's recovery in the futures sector is a move based upon continued support of the market's fundamentals and because the contracts are no longer teetering at resistance levels.
LEAN HOGS:
If the lean hog complex can round out the day higher, it will have been an incredible week for the market, as the contracts will have closed higher every day this week. And although pork cutout values are higher this morning, demand has been softer than usual, so this week's momentum in the marketplace has largely been driven by traders. October lean hogs are up $0.62 at $94.90, December lean hogs are up $0.57 at $87.55 and February lean hogs are up $0.42 at $89.72. The big change in the carcass price came because of the $14.23 jump in the belly and because of the $11.60 jump in the picnic.
The projected lean hog index is delayed from the source. Hog prices are unavailable on the Daily Direct Morning Hog Report because of packer submission issues. Pork cutouts total 184.33 loads with 173.04 loads of pork cuts and 11.30 loads of trim. Pork cutout values: up $5.19, $116.68.
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