GENERAL COMMENTS:
Thanks to trader support, again Tuesday the cattle contracts secured another higher close. Meanwhile, the lean hog contracts closed mixed with traders still hoping that fundamental support would improve. December corn is up 9 3/4 cents per bushel and December soybean meal is up $5.80. The Dow Jones Industrial Average is down 157.86 points and NASDAQ is down 187.27 points.
LIVE CATTLE:
With the support of traders ---- the live cattle complex was granted another fantastic day as the market closed $2 to $3 higher. More than anything traders have seemed to collectively agree that: Yes, the market traded sharply lower over the last two weeks, that's enough downward pressure for the meantime, it's time to put a bottom in this move. December live cattle closed $3 higher at $219.20, February live cattle closed $2.47 higher at $222.57 and April live cattle closed $2.22 higher at $225.12. No cash cattle trade developed throughout the and both bids and asking prices remain elusive at this point.
Tuesday's slaughter is estimated at 111,000 head -- 4,000 head more than a week ago and 5,000 head less than a year ago.
Tuesday's WASDE report showed mostly disappointing news for the cattle and beef markets of 2026 and 2027. Beef production for 2026 was decreased by 40 million pounds as packers are running slower slaughter speeds in the fourth quarter than initially assumed. Quarterly steer price projection showed a decrease from the remaining quarter of 2026, but no changes for 2027. Steers in the fourth quarter of 2026 are anticipated to average $220, steers in the first quarter of 2027 are expected to average $235 (unchanged), steers in the second quarter are expected to average $235 (unchanged) and steers in the third quarter of 2027 are expected to average $240 (unchanged. Beef imports for 2026 increased by 89 million pounds as beef demand remains strong but the domestic supply remains historically low. And beef exports increased by one million pound as demand into East Asian markets remains strong.
Boxed beef prices closed mixed: choice up $0.24 ($362.98) and select down $2.11 ($351.62) with a movement of 111 loads (83.01 loads of choice, 11.07 loads of select, 6.09 loads of trim and 10.95 loads of ground beef).
WEDNEDAY'S CATTLE CALL: Steady. It's rather refreshing to see the cattle contracts trading higher, but even so, it's assumed that best case scenario this week for the fed cash cattle market is that prices will trade steady as packers have recently been able to build up supply.
FEEDER CATTLE:
With the added support of seeing the live cattle contracts trade higher, the feeder cattle complex was also able to rally $2 to $4 higher through Tuesday's close. More than anything Tuesday's rally is a continuation of Monday's rally as traders are willing to turn the market's direction to a higher one following the immense downturn which the sector saw over the last two weeks. November feeders closed $2 higher at $330.35, January feeders closed $2.50 higher at $326.67 and March feeders closed $3.15 higher at $323.35. At Oklahoma National Stockyards in Oklahoma City, Oklahoma compared to last week feeder steers and heifers traded unevenly steady. But steer calves traded $10 to $20 higher, with instances of $30 higher. Heifer calves sold $5 to $15 higher. Feeder cattle supply over 600 pounds was 49%. The CME feeder cattle index Nov. 9, 2026: down $2.43, $330.42.
LEAN HOGS:
Well, a mixed close is better than a fully lower close and that's exactly what the lean hog complex saw Tuesday -- where most of its nearby contracts close higher, while the deferred months ended the day lower. More than anything the market is desperate for support. Support from traders, support from consumers -- support from anywhere would be nice to help turn the market's direction. December lean hogs closed $0.07 lower at $55.80, February lean hogs closed $0.07 lower at $60.75 and April lean hogs closed $0.07 higher at $66.90. But the April 2027 through July 2027 lean hog contracts all closed higher. Hog prices closed lower on the Daily Direct Afternoon Hog Report, down $4.88 with a weighted average price of $39.84 on 7,146 head. Pork cutouts totaled 312.45 loads with 274.91 loads of pork cuts and 37.55 loads of trim. Pork cutout values: down $1.29, $69.52. Tuesday's slaughter is estimated at 495,000 head -- 9,000 head more than a week ago and 29,000 head more than a year ago. The CME lean hog index Nov. 6, 2026: down $1.29, $60.28.
Tuesday's WASDE report showed mostly bearish news for the pork and hog markets of 2026 and 2027. Pork production for 2026 increased by 35 million
pounds as there's more market ready supply than initially assumed in the fourth quarter. Quarterly hog price projections showed a decline for most upcoming quarters are they're more front--end supply than there is demand. Hogs in the fourth quarter of 2026 are expected to average $53 (down $2), hogs in the first quarter of 2027 are expected to average $58 (down $2), hogs in the second quarter of 2027 are expected to average $63 (down $2) and hogs in the third quarter are expected to average $68 (unchanged). Pork exports fell by 79 million pounds as there is increasingly more global competition, and pork imports fell by 15 million pounds as well.
WEDENSDAY'S HOG CALL: Lower. Packers have been buying early this week in the cash market which could mean that they won't need to be aggressive later this week.
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