Active pressure in feeder cattle futures Monday led to weakness throughout the cattle trade. November feeder cattle futures were unable to find support at any point Monday, falling $2.07 per cwt by closing bell. This may lead to some market retractions over the next couple of days. Lean hog futures shifted higher, but momentum seems limited as traders still are uncertain of long-term pork demand growth.
Limited market movements developed in live cattle and lean hog futures Monday as traders continue to slowly adjust to recent market shifts through the complex. Live cattle futures posted moderate losses of 40 to 55 cents per cwt as prices have backed away from six-week highs as traders try to focus on the potential for additional short-term market moves and the direction of cash trade through the next week.
Lean hog futures have moved higher following late-week support Friday. The expectation in hog trade is that short-term price support may be in place, allowing traders to focus on potential support through the rest of October.
Feeder cattle trade was the most volatile Monday with triple-digit losses sweeping through the complex, creating concerns that further weakness may soon develop surrounding this Friday’s Cattle on Feed report.
Hog prices moved lower on the National Direct Afternoon Hog Report in moderate trade, falling $0.09 with a weighted average of $67.24 on 8,354 head.
December corn is up 7 cents per bushel and December soybean meal is up $1.30 per ton. The Dow Jones Industrial Average is down 36 points, and the NASDAQ is up 124 points.