GENERAL COMMENTS:
The cattle complex is trading higher as traders remain pleased to see strong beef demand and are hopeful that feedlot managers will lend the market further support later this week. Asking prices are noted in the South at $240 plus, but are still not established in the North. October lean hogs are up $0.03 at $90.15, December corn is down 3 1/2 cents per bushel and December soybean meal is up $0.30. The Dow Jones Industrial Average is down 7.46 points and the NASDAQ is down 247.03 points.
LIVE CATTLE:
Thus far, Tuesday presented itself as another opportunity to rally, and traders haven't let the chance to again push the contracts higher slip by. October live cattle are up $0.37 at $231.55, December live cattle are up $0.35 at $233.62 and February live cattle are up $0.60 at $235.00. It's obviously helping that boxed beef prices continue to trek higher despite the already incredibly high price point at which the market is trading, but resistance pressure could at any time pressure the live cattle contracts and cause traders some anxiety. In the spot October contract, resistance pressure looms around $232, and currently, the contract is just roughly $0.50 away from that threshold. Asing prices are noted in the South at $240 plus, but are still not established in the North.
Boxed beef prices are higher: choice up $3.96 ($408.20) and select up $2.64 ($379.78) with a movement of 69 loads (49.55 loads of choice, 8.36 loads of select, 2.90 loads of trim and 8.61 loads of ground beef).
FEEDER CATTLE:
The feeder cattle complex continues to flex its power and strength, as currently, many of the nearby contracts have already reached new contract highs for the day. September feeders are up $2.80 at $253.82, October feeders are up $3.30 at $353.55 and November feeders are up $3.57 at $351.90. More than anything, the surge in the feeder cattle complex seems to be stemming from the fact that demand in the countryside remains utterly incredible, and that the live cattle complex is seeing plenty of support, which all bodes well with traders.
LEAN HOGS:
Following yesterday's higher close in the lean hog complex, the market seems to be questioning its move, trying to determine if it has enough support to justify the move made yesterday. October lean hogs are steady at $90.12, December lean hogs are down $0.40 at $83.05 and February lean hogs are down $0.40 at $85.85. The biggest deterrent to the morning's carcass price was the loin's $2.24 decline.
The projected lean hog index is delayed from the source. Hog prices on the Daily Direct Morning Hog Report average $110.94, ranging from $106.00 to $112.50 on 3,330 head and a five-day rolling average of $110.25. Pork cutouts total 164.10 loads with 143.32 loads of pork cuts and 20.78 loads of trim. Pork cutout values: down $1.38, $114.98.
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