Tuesday Midday Livestock Market Update - Weaker Tones Take Over the Complex

GENERAL COMMENTS:

Weaker tones have taken over the livestock complex as the market trades lower into Tuesday's noon hour. Still, no cash cattle trade has developed. December corn is down 1 1/4 cents per bushel and December soybean meal is up $8.70. The Dow Jones Industrial Average is down 415.98 points and the NASDAQ is down 171.73 points.

LIVE CATTLE:

Although the live cattle complex started the day higher, the market has now transitioned into lower territory as traders are longing to see better fundamental support before they advance the market any further. The market's recent rally has been substantial, but before traders likely push it any further, they're hoping to see promising trade again this week in the fed cash cattle market. October live cattle are down $1.52 at $220.72, December live cattle are down $2.12 at $223.02 and February live cattle are down $1.87 at $224.42. No trade has developed yet in the fed cash cattle market, and it's likely that this week could be delayed until Thursday or Friday. Both bids and asking prices remain elusive at this point.

Boxed beef prices are mixed: choice up $1.15 ($376.46) and select down $0.19 ($354.36) with a movement of 56 loads (35.25 loads of choice, 10.58 loads of select, zero loads of trim and 10.27 loads of ground beef).

FEEDER CATTLE:

And in keeping in alignment with the live cattle complex, it comes as no surprise to see the feeder cattle contracts trading lower into Tuesday's noon hour. September feeders are down $3.12 at $340.50, October feeders are down $3.60 at $334.25 and November feeders are down $3.50 at $329.27. It will be interesting to see how the board's softened tone today affects feeder cattle prices as sales were stronger last week, and also on Monday.

LEAN HOGS :

And the lean hog complex is keeping with its lower trend into Tuesday's noon hour as the market simply lacks enough fundamental support to do otherwise. October lean hogs are down $0.40 at $79.20, December lean hogs are down $1.52 at $69.70 and February lean hogs are down $1.55 at $72.00. The spot October contract is currently trading below the market's support plane, and is beginning to trade below that threshold.

The projected lean hog index is delayed from the source. Hog prices are higher on the Daily Direct Morning Hog Report, up $1.28 with a weighted average price of $85.11, ranging from $83.00 to $88.00 on 6,341 head and a five-day rolling average of $85.80. Pork cutouts total 172.44 loads with 158.26 loads of pork cuts and 14.17 loads of trim. Pork cutout values: down $1.02, $88.76.