GENERAL COMMENTS:
Cattle markets have rallied higher through the morning with active gains seen in both live cattle and feeder cattle futures Monday following the weekend break. The increased volatility over the past couple of weeks seems to have added fuel to the fire, but extreme volatility of this nature seems to create more market shifts than solve any long-term market issues. December corn is up at $4.283 and December soybean meal is up $1.60 at $318.7. The Dow Jones Industrial Average is up 21.01 at 47,008.11.
LIVE CATTLE:
Live cattle futures continue to surge higher following additional buyer support quickly flooding the market. December live cattle futures are now trading near $228 per cwt following a $6.60 per cwt morning rally. The rest of nearby live cattle contracts continue to trade slightly higher than spot month market gains, but the overall support remains uncertain as the wide market shifts over the past couple of weeks is leaving prices still vulnerable. The ability to keep recent market lows in check could help to instill a short and potentially intermediate market floor into live cattle futures, helping to draw additional trade activity heading into the holiday season. Cash cattle remain quiet through the morning as it is looking like it may be a typically quiet Monday with both buyers and sellers busy taking inventory and preparing for the week ahead. Bids and asking prices have yet to be established, and significant trade volume will likely be delayed until the second half of the week. With Tuesday being a holiday, but markets remaining open, likely, activity through cattle country and with packer schedules will generally be unaffected by the Veterans Day Holiday. December live cattle are $4.23 higher at $225.575, February live cattle are $4.50 higher at $224.25 and April live cattle are $4.08 higher at $223.80. Boxed beef prices are higher: choice up $1.83 ($378.23) and select up $0.95 ($362.04) with a movement of 36.95 loads (22.56 loads of choice
FEEDER CATTLE:
Feeder cattle futures are leading the market higher Monday, with indications that additional support may continue to add buyer support as the week continues. Feeder cattle futures are locked $9.25 per cwt higher, and a close at these levels could lead to increased volatility Tuesday. The challenge with Tuesday being a holiday is that the markets will remain open, but with financial institutions closed, this typically significantly reduces overall trade volume and could add additional volatility to the market moves. November feeders are $9.25 higher at $335.65, January feeders are $9.25 higher at $328.825 and March feeders are $9.25 higher at $323.225.
LEAN HOGS:
Lean hog futures are generally higher Monday morning, with nearby contracts posting triple-digit support based partially on support in pork values. But the wide swing higher in cattle trade is also spilling over to the hog complex during morning trade activity. Limited fundamental shifts are seen in the lean hog market at this point, with prices still searching for a sense of market support following firm pressure over the last few weeks.
December lean hogs are $2.43 higher at $81.825, February lean hogs are $0.93 higher at $80.275 and April lean hogs are $0.43 higher at $83.825. Hog Prices are lower on the Daily Direct Morning Hog report, down $0.19 with a weighted average of $84.29, ranging from $82.00 to $87.00 on 4,281 head with a five-day rolling average of $84.61. Pork Cutouts totaled 205.85 loads with 191.55 loads of pork cuts and 14.30 loads of trim. Pork cutout values are up $3.55 at $100.18.
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