GENERAL COMMENTS:
Sharp, aggressive gains seen in all cattle futures led the market to limit higher moves by the end of the day. This not only led to expanded limits Tuesday, but also sparked spill-over buying across much of the lean hog complex. Hog prices closed lower on the Daily Direct Afternoon hog report, down $0.04 with a weighted average of $83.95 on 5,894 hogs. December corn closed up 2 1/2 at $4.298 and December soybean meal closed up $2.90 at $320. The Dow Jones Industrial Average is up 381.53 at 47,368.63.
LIVE CATTLE:
Live cattle futures surged higher, hitting the daily trading limit before the closing bell. The underlying support seen in the complex and recent market pressure has helped to bring active buying activity to the table. It is uncertain just how much additional depth is behind the current market surge, but expanded trading limits Tuesday are now in effect and could bring additional volatility to the already fast-moving market that can make your head spin and gut sink. Cash cattle markets remain generally quiet Monday afternoon. There were a few mandatory trades reported in Texas at $228 per cwt, but in general, bids and offers remain elusive as both sides seem to feel comfortable waiting for the dust to settle on the aggressive futures market moves seen early in the week. Most trade will likely be pushed into Thursday or Friday at this point.
December live cattle closed $7.20 higher at $228.55, February live cattle closed $7.25 higher at $227, and April live cattle closed $7.25 higher at $226.975.
Monday's slaughter is estimated at 113,000 head, 4,000 head more than a week ago and 1,000 head more than a year ago.
Boxed beef prices closed mixed: choice up $0.92 ($377.32) and select down $1.39 ($359.7) with a movement of 84.27 loads (48.97 loads of choice, 14.37 loads of select, 5.59 loads of trim and 15.34 loads of ground beef).
TUESDAY'S CATTLE CALL: Steady to $1 Higher. The active futures support seen early in the week will continue to spark interest in asking prices, although trade volumes may not develop until midweek or later.
FEEDER CATTLE:
Feeder cattle futures led the market higher Monday, with limit gain seen through a significant portion of the trading day. Markets closed at $9.25 per cwt higher in all nearby contracts and most deferred futures, which is opening the door for expanded trading limits Tuesday. Feeder cattle futures will be limited to $13.75 per cwt, and current traders are looking for some follow-through buyer support to retrack previous market tumbles over the past couple of weeks. The holiday trade activity may limit some buyers who are normally in the market, although commodity trade will still be open, but many institutional trades could be closed due to the holiday. November feeders closed $9.25 higher at $335.65, January feeders closed $9.25 higher at $328.825 and March feeders closed $9.25 higher at $323.225. The CME Feeder Cattle Index for November 6: down $1.59, $344.37.
LEAN HOGS:
Lean hog futures posted strong upward market shifts Monday afternoon. The continued focus on current supply levels and recent market pressure has been stimulated by the abrupt market move higher across the cattle complex. Although fundamentals have changed very little, if at all, over the past week, the hope that potential long-term supply issues and trade support could bring additional buying back into the market has many traders optimistic early in the week. December lean hogs closed $3.38 higher at $82.775, February lean hogs closed $3.48 higher at $82.825 and April lean hogs closed $3.28 higher at $86.675. Monday's hog slaughter is estimated at 494,000 head, 1,000 head more than a week ago and 39,000 head more than a year ago. Pork Cutouts totaled 376.09 loads with 342.33 loads of pork cuts and 33.76 loads of trim. Pork cutout values are up $1.24 at $100.22. The CME Lean Hog Index for November 6: down $0.85, $90.05.
TUESDAY'S HOG CALL: Steady. Limited price direction is likely through early Tuesday, with the focus on futures trade and the overall lack of outside market direction that may be seen Tuesday due to the Veterans Day Holiday.
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