Feeder cattle futures have posted strong follow-through buying Tuesday with triple-digit gains seen across the complex. Additional support is slowly trickling into live cattle and lean hog markets but remain elusive due to expected light holiday trade volume. December corn is up 2 1/4 at $4.32 and December soybean meal is down $2.80 at $317.2. The Dow Jones Industrial Average is up 381.71 at 47,750.34.
LIVE CATTLE:Live cattle futures are trading lower at midday, which is a general disappointment following the sharp limit gains Monday, strong triple digit support in feeder cattle futures, and active gains in morning boxed beef values. But the good news in nearby live cattle futures is that prices have bounced back from triple-digit losses seen early in the trading day and have the potential to trade and possibly close near steady. Which would put prices still sharply higher for the week. Cash cattle is starting with another slow start to the day with some early asking prices starting out around $232-plus in the South, but they are still not established in the North. Significant trade volume will likely be delayed until Wednesday or later. Beef cutouts are expected to be mixed with light to moderate box movement.
December live cattle are $0.40 lower at $228.15, February live cattle are $0.15 higher at $227.15, April live cattle are $0.20 lower at $226.775.
Boxed beef prices are higher: choice up $3.10 ($380.42) and select up $0.70 ($360.40) with a movement of 67.87 loads (41.79 loads of choice, 9.13 loads of select, 6.08 loads of trim and 10.87 loads of ground beef).
FEEDER CATTLE:Feeder cattle futures have continued the Monday rally with active triple-digit gains seen in all contract months. With prices closing at limit gains Monday, the ability to utilize expanded trade limits creates optimism but also uncertainty within the market. Currently prices are far from reaching the expanded trade limits, which would allow markets to revert back to normal limits Wednesday if markets close near the current levels. Traders are trying to rebound from recent losses, but it is uncertain just how much additional short-term fundamental support remains within the feeder cattle complex. November feeders are $3.95 higher at $339.6, January feeders are $3.10 higher at $331.925 and March feeders are $3.05 higher at $326.275.
LEAN HOGS:Lean hog futures remain generally quiet on Veterans Day with narrow trade ranges seen through the complex. At midday, spot month December contracts remain the only contract trading with a negative value, but the losses remain minimal as traders adjust to the early week rally seen across the complex. Narrow gains seen in spring months focusing on the hope of additional pork demand kindling through the export market. But for now, very few traders are willing to break away from Monday's active gains.
December lean hogs are $0.13 lower at $82.65, February lean hogs are $0.55 higher at $83.375 and April lean hogs are $0.35 higher at $87.025. Hog prices are lower on the Daily Direct Morning Hog report, down $2.10 with a weighted average of $82.19, ranging from $75.00 to $83.75 on 1,160 head with a five-day rolling average of $84.51. Pork cutouts totaled 202.18 loads with 184.94 loads of pork cuts and 17.24 loads of trim. Pork cutout values are down $3.43 at $99.25.
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