GENERAL COMMENTS:
It's been a lackluster morning for the livestock complex as the cattle contracts are trading somewhat higher, but the lean hog complex is trading notable lower. Still no cash cattle trade has developed and asking prices remain elusive at this point too. December corn is down 5 cents per bushel and December soybean meal is down $1.50. The Dow Jones Industrial Average is down 30.93 points and NASDAQ is down 23.88 points.
LIVE CATTLE:
Although the market started the day off weaker, the live cattle complex has collectively advanced its position and is now trading slightly higher into Tuesday's noon hour. Unfortunately, the market continues to stagger around its 40-day moving average in the spot December contract as traders don't know which way to truly push the market just yet. On one hand, they look at the market's immediate fundamentals and are disappointed to see fed cash cattle prices and boxed beef prices continuing to drift lower as they typically do seasonally. But on the other hand, traders have also recognized that from a 10,000-foot view perspective, the market is still incredibly bullish with herd supplies at a multi-decade low, and the fact remaining that supplies can't be rebuilt overnight.
October live cattle are up $0.22 at $231.47, December live cattle are up $0.57 at $234.40 and February live cattle are up $0.45 at $236.67. Still no cash cattle trade has developed and it's not likely that any trade develops until Wednesday at the earliest. Bids and asking prices remain elusive at this point too.
Boxed beef prices are lower: choice down $0.05 ($370.63) and select down $2.06 ($346.83) with a movement of 69 loads (46.61 loads of choice, 11.18 loads of select, 5.79 loads of trim and 5.08 loads of ground beef).
FEEDER CATTLE:
The feeder cattle complex isn't being as cautious as the live cattle market is, as its contracts are confidently trading $3.00 higher into Tuesday's noon hour. October feeders are up $3.30 at $359.50, November feeders are up $3.75 at $357.57 and January feeders are up $3.85 at $351.20. And with the feeder cattle complex not up against immediate resistance pressure, it's likely that even if the live cattle market does weaken and close lower, the feeder cattle contracts should be able to maintain their momentum through the day's end.
LEAN HOGS:
It's been a painful morning for the lean hog complex as the market continues to break lower. Seeming unable to maintain the gains made just last week, the lean hog complex is continuing to back away from the highs scored late last week as fundamental support isn't as strong as traders need it to be. October lean hogs are down $0.92 at $100.22, December lean hogs are down $1.35 at $89.02 and February lean hogs are down $1.32 at $90.57.
Hog prices are higher on the Daily Direct Morning Hog Report, up $0.47 with a weighted average price of $102.33, ranging from $98.00 to $104.00 on 8,505 head and a five-day rolling average of $103.13. Pork cutouts total 152.67 loads with 139.90 loads of pork cuts and 12.77 loads of trim. Pork cutout values: up $0.02, $112.24.
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