As the day passes on, more and more support is building for a positive livestock market outlook. Whether these signals will stick is yet to be known and time will tell.
Though the market opened with mixed signals Wednesday morning, it’s taken a turn for a positive midday outlook with live cattle, feeder cattle, lean hog and corn contracts all seeing noteworthy gains at the noon hour.
December corn is up 1/4 cent at midday. The Dow Jones is up 150.56 points and the NASDAQ is up 30.56 points.
Thus far the week has been relatively quiet for live cattle contracts however it feels like the market may be at turning point in the week with confirmation of higher boxed beef prices and though untouched, higher cash cattle asking prices.
Asking prices of $104 to $105 remain in the South, and $170 dressed in the North. December’s live cattle contract opened Wednesday at $107.52 and has since then trekked upward to $108.02. Nearby and deferred are sharing the same energy.
Boxed beef cutouts at midday are higher with $0.31 gains on choice ($215.70) and $0.72 gains on select ($190.38). Wednesday’s boxed beef movement is higher with 95 loads total (37.08 loads of choice cuts, 23.04 loads of select cuts, 9.13 loads of trimmings and 25.84 loads of ground beef).
Wednesday’s Fed Cattle Exchange offered 1,533 head of cattle from Nebraska, Colorado, Texas, and Kansas, asking price was $104, no lots sold.
Feeder cattle markets have responded similarly this morning with all nearby and deferred contracts finding significant support. October’s feeder cattle contract opened Wednesday at $141.75 and has since then moved to $141.85. Whether the week will subside with gains or losses is yet to be known, but with midday support building, cash cattle untouched and strengthening boxed beef prices, the stars are aligning for a positive undertone.
The worry of African swine fever continues to circulate as late Tuesday evening South Korea confirmed their fifth case of the disease. Since last week South Korea has culled 22,000 pigs but identifying the source of the outbreak continues to be the unknown.
All that aside, lean hog contracts are finding more and more support as the day trails on. The December lean hog contract opened Wednesday at $70.00 and has since then moved slightly to $70.67.
The projected lean hog index for 9/24/19 is expected to be $54.67 down $0.15 and the actual lean hog price for 9/23/19 came in $0.31 lower at $54.82. Pork cutouts came in at 172.42 loads total, with 153.20 loads of pork cuts and 19.23 loads of trimmings. Pork cutout values are higher Wednesday up $1.17 at $70.91.
Prices are higher Wednesday on the National Direct Morning Hog Report, up $0.78 at a weighted average of $46.75, ranging from $40.00 to $50.00, on 7,631 head sold with a five-day rolling average of $45.25.