DTN Midday Livestock Comments 11/29 11:30
Cattle See Modest Support at Tuesday's Noon Hour
The livestock complex is seeing mixed interest from traders as the cattle
contracts trade higher into Tuesday's afternoon, but the lean hog complex can't
muster up any support.
DTN Livestock Analyst
The cattle contracts are trading higher into Tuesday's afternoon as the
market finds comfort in slightly cheaper corn prices and assumes that this
week's cash sector will trade steady, if not higher again this week. The lean
hog complex is teetering but trading mostly lower as the market longs for
support and hopes to see more in afternoon pork cutout values. March corn is
down 1 1/2 cents per bushel and January soybean meal is down $4.20. The Dow
Jones Industrial Average is down 116.52 points.
The live cattle complex is trading higher into Tuesday's afternoon as the
market clings to the support that's been driving the cash sector higher.
December live cattle are up $0.02 at $152.60, February live cattle are up $0.20
at $154.87 and April live cattle are up $0.10 at $158.55. The cash cattle
market hasn't seen any business develop yet and it's not likely that the market
sees any real interest until Wednesday, or potentially Thursday if feedlots
accomplish pushing this week's market higher again. Early asking prices in the
South are noted at $156 to $157 in the South but are still unestablished in the
North. If the contracts are able to close higher come Tuesday's end, the market
could trade favorably into Wednesday's market as it sees both technical and
Boxed beef prices are lower: choice down $1.18 ($253.35) and select down
$1.99 ($226.54) with a movement of 82 loads (44.02 loads of choice, 16.75 loads
of select, 9.64 loads of trim and 11.21 loads of ground beef).
The feeder cattle complex is attempting to find support in Tuesday's market
as the complex leans on the live cattle market's slightly higher trade and
finds comfort in slightly lower grain prices. January feeders are up $0.67 at
$177.55, March feeders are up $0.47 at $181.00 and April feeders are up $0.37
at $184.77. It's also helping that Monday's CME feeder cattle index closed
$3.56 higher, proving that buyers are looking to the market's auctions and
trying to find deals where they can make money and continue to participate.
The lean hog complex has traded back and forth throughout Tuesday's market,
trying to decide if it should trade higher or lower. At this point, the market
is trading mostly lower into Tuesday's afternoon as the market looks at cheaper
pork cutout values at noon, and only modest interest in the cash market. One
would think that, with Monday's sharp decline, which led prices to close at the
lowest point they've been at in mid-October, the complex would trade steady or
somewhat higher, but the lack of demand keeps the market treading lower.
December lean hogs are up $0.42 at $81.02, February lean hogs are down $0.10 at
$84.65 and April lean hogs are down $0.42 at $90.07.
The projected lean hog index for Nov. 28 is down $0.42 at $84.12, and the
actual index for Nov. 25 is down $0.93 at $84.63. Hog prices are higher on the
Daily Direct Morning Hog Report, up $0.31 with a weighted average of $82.04,
ranging from $76.50 to $87.50 on 6,140 head and a five-day rolling average of
$82.00. Pork cutouts total 173.65 loads with 148.38 loads of pork cuts and
25.27 loads of trim. Pork cutout values: down $0.75, $88.77.
ShayLe Stewart can be reached at email@example.com
Cattlemen are eager for supply and demand mechanics to swing their way, but
the market isn't completely free of hurdles as bearish concerns about the U.S.
and global economies loom. Hear DTN Livestock Analyst ShayLe Stewart's thoughts
on the 2023 cattle market at the all-virtual DTN Ag Summit on Dec. 12-13. Full
details available at http://www.dtn.com/agsummit
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