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DTN Midday Livestock Comments 11/13 12:03
Cattle Push Higher Wednesday, While Hogs Fall Back
Cash cattle asking prices are noted in the South at $188 to $189 but are
still unestablished in the North. No trade has developed yet but packer
interest could improve later Wednesday afternoon.
ShayLe Stewart
DTN Livestock Analyst
GENERAL COMMENTS:
The livestock complex is trading mixed into Wednesday's noon hour as the
cattle contracts are mostly higher, but the lean hog complex is more reserved
in its trade. Still no developments have surfaced in the cash cattle market,
but packer interest could improve this afternoon. December corn is down 2 1/2
cents per bushel and December soybean meal is down $2.80. The Dow Jones
Industrial Average is up 173.52 points.
LIVE CATTLE:
The live cattle complex is trading mostly higher as the market continues to
find ample support. The spot December contract is the only month trading
slightly lower, and that's likely because of the boxed beef market's lower
prices Wednesday morning. The cash cattle market continues to sit idle and no
bids have surfaced, but packer interest could improve later today. Asking
prices are noted in the South at $188 to $189 but remain unestablished in the
North. It's expected prices will trade steady this week, but if by chance
feedlot managers elect to mostly roll their showlists over to next week and
trade very few cattle this week, there's a chance packers could have to get
more aggressive in the market next week if they are indeed short bought.
December live cattle are down $0.30 at $184.10, February live cattle are up
$0.02 at $186.10, and April live cattle are up $0.07 at $187.77.
Boxed beef prices are lower: choice down $0.78 ($307.49) and select down
$1.05 ($278.87) with a movement of 82 loads (46.18 loads of choice, 12.46 loads
of select, 5.04 loads of trim and 18.75 loads of ground beef).
FEEDER CATTLE:
With the help of the live cattle market's support, the feeder cattle complex
is again trading higher into the noon hour. November feeders are steady at
$246.82, January feeders are up $0.72 at $244.30, and March feeders are up
$1.07 at $242.80. This higher move once again helps distance the spot January
contract further above the market's 100-day moving average which from a
technical standpoint signals strength. The market continues to rally thanks to
the added support of trader interest, but if the fed cash cattle market can
trade steady, the contracts may be able to push even higher later this week
once trade develops.
LEAN HOGS:
At this point traders seem uncertain in challenging the market's resistance
any more until support from fundamentals strengthens. December lean hogs are
down $0.55 at $81.80, February lean hogs are down $0.32 at $86.00, and April
lean hogs are down $0.15 at $89.97. You may point to Wednesday's higher midday
carcass price and wonder what's not supportive enough about a $1.36 jump? But
aside from today's higher price, the carcass has been mostly trading lower this
week as the belly has seen wild price swings. And while traders are
appreciative of today's gain, they also want to see stable consumer demand
consistency at the meat counter.
The projected CME Lean Hog Index for 11/12/2024 is up $0.06 at $89.94, and
the actual index for 11/11/2024 is down $0.14 at $89.88. Hog prices on the
Daily Direct Morning Hog Report average $87.99, ranging from $86.00 to $90.00
on 3,810 head and a five-day rolling average of $86.62. Pork cutouts total
182.92 loads with 152.70 loads of pork cuts and 30.22 loads of trim. Pork
cutout values: up $1.36, $99.04.
ShayLe Stewart can be reached shayle.stewart@dtn.com
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