Cattle Contracts Trading Fully Higher
It’s been a prosperous morning for most of the livestock market as cattle contracts are trading fully higher and through support has been shaky for the lean hog market, it looks as through support is gaining as the afternoon approaches.
The livestock complex has repeated the benefits from the support surfacing throughout Tuesday morning’s trade. Cattle contracts have steadily traded higher all throughout the day, but the lean hog complex has been a bit touchy — trading higher and lower throughout the morning. December corn is down 2 1/4 cents per bushel and December soybean meal is down $3.80. The Dow Jones Industrial Average is down 84.96 points and NASDAQ is up 64.04 points.
With live cattle prices faring better than what was expected, feeders are hopeful to push cash cattle trade to the end of the week and bat for at least steady prices. December live cattle are up $0.30 at $103.70, February live cattle are up $0.15 at $106.55 and April live cattle are up $0.87 at $110.37.
Boxed beef prices are mixed: choice down $0.29 ($207.54) and select up $0.55 ($189.04) with a movement of 119 loads (64.12 loads of choice, 20.62 loads of select, 13.23 loads of trim and 21.18 loads of ground beef).
The feeder cattle market took the brunt of last week’s downward spiral but come Tuesday the market is taking full advantage of the building support. November feeder cattle are up $2.40 at $132.87, January feeder cattle are up $2.35 at $129.12 and March feeders are up $2.25 at $128.67. Helping support the market is the slight regression in the nearby corn contracts and traders being willing to step back into the market and leave their sideline position.
Feeder cattle and calves sold mostly lower throughout the countryside Monday afternoon, but it was interesting to see sale receipts lower than the previous week. As cow-calf producers saw a weaker market they revaluated their marketing strategy, and some decided to wait a little longer for a better market.
Finding support has been touch and go for the lean hog market as cattle contracts seem to be drawing more trader interest. As the lean hog market starts to face some resistance, it makes sense that traders would be more prone to looking at the cattle contracts as they’ve scaled considerably lower here recently. December lean hogs are steady at $67.75, February lean hogs are up $0.22 at $67.87 and April lean hogs are down $0.10 at $69.97. Following Monday’s weaker pork cutout close, Tuesday’s midday cutout looks promising for a stronger close, but the market has been facing some regression in cutout values as of late.
The projected lean hog index for 10/23/2020 is down $0.37 at $78.17 and the actual index for 10/22/2020 is down $0.06 at $78.54. Hog prices are higher on the National Direct Morning Hog Report, up $0.81 with a weighted average of $61.32, ranging from $56.00 to $61.32 on 4,276 head and a five day rolling average of $60.08. Pork cutouts total 198.41 loads with 179.42 loads of pork cuts and 18.99 load of trim. Pork cut out values: up $3.03, $94.89.