GENERAL COMMENTS:
The cattle complex is rallying aggressively into Tuesday's noon hour as traders are pleased with the market's fundamentals although they understand risk still remains; still, they believe in the short term, enough downside has been endured. Still no developments have surfaced in the fed cash cattle market. March corn is up 5 1/4 cents per bushel and January soybean meal is down $1.40. The Dow Jones Industrial Average is up 243.12 points and NASDAQ is up 162.28 points.
LIVE CATTLE:
Traders seemed to take note that on Monday boxed beef demand was stronger as both midday and closing boxed beef prices were higher, which has helped push the live cattle contracts substantially higher into Tuesday's noon hour. Now it is a little disheartening to see midday boxed beef prices are a tick lower Tuesday -- but thankfully that hasn't affected the futures market thus far. December live cattle are up $3.82 at $218.02, February live cattle are up $4.55 at $220.42 and April live cattle are up $4.60 at $222.15. Still no trade in the cash cattle market and no bids or asking prices have surfaced.
Boxed beef prices are lower: choice down $2.69 ($366.20) and select down $4.74 ($353.14) with a movement of 73 loads (55.30 loads of choice, 7.92 loads of select, zero loads of trim and 9.85 loads of ground beef).
FEEDER CATTLE:
The feeder cattle complex is again following the direction of the live cattle market, which has thankfully pushed feeders to a sporty $5.00 to $6.00 rally. January feeders are up $6.40 at $327.97, March feeders are up $6.05 at $321.57 and April feeders are up $6.00 at $320.85. Tuesday's vibrant rally should help strengthen feeder cattle sales in the countryside this afternoon.
LEAN HOGS:
Although pork cutout values are a tick higher Tuesday morning, the lean hog complex is trading lower as traders question if there truly enough support in the marketplace to push the contracts higher. December lean hogs are up $0.12 at $80.35, February lean hogs are down $0.57 at $79.72 and April lean hogs are down $0.72 at $83.55. Given that packers weren't very active in last week's market, it wouldn't be surprising to see more demand from packers developing at any point in time now.
The projected CME Lean Hog Index is delayed from the source. Hog prices on the Daily Direct Morning Hog Report average $70.06, ranging from $65.00 to $74.00 on 1,535 head and a five-day rolling average of $70.06. Pork cutouts total 209.12 loads with 187.66 loads of pork cuts and 21.46 loads of trim. Pork cutout values: up $0.22, $95.01.
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