GENERAL COMMENTS:
Keeping with the trend from late last week, the cattle contracts are trading higher as traders yearn to see the market keep with a higher trend.
New showlists for the week are steady in Texas, but slightly higher in Kansas and Nebraska. December live cattle are down $0.15 at $228.2, November feeder cattle are up $1.73 at $343.625, December lean hogs are down $0.15 at $66.775, December corn is down 6 1/4 cents per bushel and December soybean meal is down $3.50. The Dow Jones Industrial Average is up 20.06 points and the NASDAQ is up 409.55 points.
LIVE CATTLE:
With ample support pouring into the market late last week, the live cattle contracts are gingerly continuing to rally into the new week as traders hope that the same level of fundamental support will be found again this week. October live cattle are up $0.17 at $227.72, December live cattle are down $0.17 at $228.17 and February live cattle are up $0.25 at $231.12. No bids or asking prices have surfaced yet this week and trade will likely be delayed until Friday as there's a Cattle on Feed report set to be released later this week. New showlists for the week are steady in Texas, but slightly higher in Kansas and Nebraska.
Last week Southern live cattle traded at mostly $228 which is $5 higher than the previous week's weighted average and Northern dressed cattle traded at mostly $355 which is $10 higher than the previous week's weighted average. But at Friday's close last week, the market had only traded a thin volume so checking Monday's official USDA reports to see where the week's weighted averages landed, will be vital.
Boxed beef prices are mixed: Choice down $0.57 ($371.74) and select up $8 ($361.05) with a movement of 38 loads (22.18 loads of choice, 3.59 loads of select, 3.14 loads of trim and 9.36 loads of ground beef).
FEEDER CATTLE:
And upon seeing the live cattle contracts trading higher, the feeder cattle complex has jumped into the new week eager and ready to take the charge as well as its contracts are all trading into Monday's noon hour as well. October feeder cattle are up $1.72 at $345.35, November feeders are up $2.15 at $344.05 and January feeders are up $1.52 at $339.80. So long as support from the live cattle contracts continues, then the feeder cattle contracts will likely be able to maintain their higher trend.
LEAN HOGS:
The lean hog complex is back to trading mixed following last week's modest rally. More than anything, traders continue to ask themselves: what is demand going to amount to Monday, and this week? That will likely be the market's biggest driving factor throughout the week's trade. December lean hogs are down $0.15 at $66.77, February lean hogs are down $0.22 at $69.00 and April lean hogs are down $0.35 at $74.32. The projected lean hog index for Oct. 16 is down $0.79 at $73.40 and the actual index for Oct. 15 is down $0.90 at $74.19. Hog prices are higher on the Daily Direct Morning Hog Report, up $1.64 with a weighted average price of $71.99, ranging from $62 to $78 on 583 head and a five-day rolling average of $70.68. Pork cutouts total 147.65 loads with 138.16 loads of pork cuts and 9.49 loads of trim. Pork cutout values: Down $1.35, $79.20.
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