CattleLink Market View

Live cattle: On Monday afternoon, the spot December live cattle contract rallied another $2.52 higher through the day’s end on cautious optimism circulating throughout the marketplace that the volatility that sent the cattle complex tumbling lower just a couple of weeks ago is now behind the market. Last week, the futures market improved, but fed cash cattle prices still suffered. Southern live cattle traded $2 to $4 lower, but Northern dressed cattle sold $9 to $11 cheaper.

Feeder cattle: The feeder cattle complex was the biggest catalyst for the cattle market’s rally on Monday, as most contracts closed $5 to $6 higher. But last week, feeder cattle sales in the countryside still traded sharply lower than compared to past weeks. For traders to continue to push prices higher, they’ll want to see more fundamental support develop.

Lean hogs: The lean hog complex closed mixed Monday afternoon with the same question plaguing Monday’s market: When is consumer demand going to improve? Until there is key evidence that consumer demand is improving, a steady to somewhat lower trend is likely for the hog complex.

Corn: December corn futures rose 8 1/2 cents last week to finish at $4.31 1/2, followed up Monday by the 2 3/4 cent higher close on strong inspections and the higher wheat finish. 

Soybean Meal: December soybean meal futures surged $27.50 last week to finish at $321.5 before slipping a bit on Monday, still supported by the strong soybean market and fund short covering.