DTN Midday Livestock Comments 10/04 11:45
Higher Corn Puts a Kibosh to Hopes of Higher Trade for Feeders Tuesday
The cash cattle market hasn't seen any interest develop from packers, but
with boxed beef prices printing higher, feedlots are hopeful to get more money
when it does come time to trade cattle.
DTN Livestock Analyst
As the livestock complex nears the noon hour, the corn market's mild gain
has rocked the feeder cattle complex back on its heels. The lean hog complex is
clinging to its market's strong fundamentals and hopes that stronger tones can
again find their way into the contracts before closing time. December corn is
up 4 cents per bushel and December soybean meal is down $2.20. The Dow Jones
Industrial Average is up 815.46 points.
The nearby live cattle contracts are struggling, but the deferred contracts
are still trading higher into Tuesday's afternoon as the market clings to its
bullish fundamentals. October live cattle are down $0.07 at $144.25, December
live cattle are down $0.57 at $147.45 and February live cattle are down $0.17
at $151.37. With boxed beef prices closing higher Monday afternoon, and midday
prices higher on Tuesday, could it be that the market's seen its seasonal low
or will tough economic times drive prices lower in the weeks to come?
Regardless, feedlots are pleased to see the heightened interest in beef prices
as it means that packers will likely continue to run chain speeds aggressively
and need to stay active in the cash market. The cash cattle market hasn't seen
any interest at this point, though packers could grow more curious as the day
goes on. Asking prices in the South are noted at $145 but are unknown in the
Boxed beef prices are higher: choice up $2.88 ($248.82) and select up $0.15
($221.46) with a movement of 52 loads (28.86 loads of choice, 10.17 loads of
select, 3.12 loads of trim and 9.62 loads of ground beef).
The feeder cattle market started the day out stronger but as the corn
complex grows stronger too, it's now heading into Tuesday's afternoon lower.
October feeders are down $0.72 at $174.80, November feeders are down $0.62 at
$175.42 and January feeders are down $0.55 at $176.47. What's encouraging at
this point, however, is that, even though the feeder cattle market is trading
lower, it's not pressuring Monday's lower trading range.
The lean hog complex was eager to start the day off stronger, but as the day
has progressed, its market has grown hesitant and is now heading into Tuesday's
afternoon fully lower. October lean hogs are down $1.15 at $87.62, December
lean hogs are down $2.17 at $75.55 and February lean hogs are down $1.32 at
$78.77. Even though the futures market may be retracting, the fundamental side
of the market looks rather supportive as midday cash prices and early pork
cutout values are higher. The $14.62 gain in bellies Monday afternoon helped
pull pork cutout values higher, so, heading into Tuesday's afternoon, seeking
the afternoon cutout data will be intriguing as everyone knows that bellies are
The projected lean hog index is delayed from the source. Hog prices are
higher on the Daily Direct Morning Hog Report, up $3.14 with a weighted average
of $85.81, ranging from $80.00 to $95.50 on 4,553 head and a five-day rolling
average of $86.55. Pork cutouts total 196.98 loads with 173.83 loads of pork
cuts and 23.15 loads of trim. Pork cutout values: up $0.05, $99.98.
ShayLe Stewart can be reached email@example.com
(c) Copyright 2022 DTN, LLC. All rights reserved.
Get your local Cash Bids emailed to you each morning from DTN – click here
to sign up for DTN Snapshot.