Continuing to Press Lower in Livestock Arena
Following Monday’s regression, the livestock contracts are mostly trading lower except for some deferred support brewing in the feeder cattle market.
The livestock complex is trading mostly lower other than the deferred feeder cattle contracts that are seeing some modest support arise. Following Monday’s trade, the complex is pressured once again as buyers are stepping to the sidelines wanting to see where the market’s short-term direction goes and how far contracts are willing to bow. December corn is up 2 cents per bushel and December soybean meal is down $0.90. The Dow Jones Industrial Average is up 185.63 points and NASDAQ is up 70.87 points.
Keeping with Monday’s trend, the live cattle complex tips lower with nearby contracts seeing the sharpest regression. October live cattle are down $0.70 at $103.30, December live cattle are down $1.00 at $104.15 and February live cattle are $1.10 lower at $107.07. Even through the market’s pressure and bearish undertone remain thick through the marketplace, higher boxed beef prices are always welcome and muster some encouragement.
Following Monday’s emotionally fueled cash cattle trade, Tuesday’s business hasn’t been overly sought after as packers sit on ample supply. Bids of $104 have been renewed in Nebraska and Iowa, but feedlots have yet to accept bids for Tuesday’s business.
Boxed beef prices are higher: choice up $1.60 ($211.34) and select up $3.28 ($195.12) with a movement of 71 loads (40.99 loads of choice, 11.44 loads of select, 12.43 loads of trim and 6.39 loads of ground beef).
Wondering how contracts are going to fare over the next couple of weeks/months remains a big market to the feeder cattle complex. As corn prices keep scaling higher, buyers are pushed away from the market as break-even levels continue to change and buyers are worried about the long-term outcome of the contracts. October feeders are down $2.20 at $132.40, November feeders are down $1.00 at $129.07 and January feeders are up $0.20 at $125.42.
Trading above the $70.00 threshold didn’t last long for the lean hog market as Tuesday morning nearby contracts fell below the resistance plane once again. The livestock market’s pressure has seeped into the lean hog sector even though the complex was able to keep the December contract elevated through Monday’s trade. December lean hogs are down $2.22 at $69.20, February lean hogs are down $1.95 at $68.90 and April lean hogs are down $1.37 at $70.95.
The projected lean hog index for 10/19/2020 is up $0.34 at $78.62, and the actual index for 10/16/2020 is up $0.04 at $78.28. Hog prices are lower on National Direct Morning Hog Report, down $1.71 with a weighted average of $60.02, ranging from $57.54 to $66.00 on 5,899 head and a five-day rolling average of $61.63. Pork cutouts total 215.53 loads with 199.90 loads of pork cuts and 15.63 loads of trim. Pork cutout values: up $1.77, $99.87.