DTN Midday Livestock Comments 10/30 12:08
Livestock Contracts Rally Support into Friday's Afternoon
This week's been fruitful for the cattle contracts, but come Friday even the
lean hog market has seen support rally.
DTN Livestock Analyst
The live cattle contracts are facing a little pressure at midday, but both
the feeder cattle and lean hog markets are trading steadily higher. Cash cattle
bids are starting to pop but and draw more packer interest, but feedlots have
yet to jump on those offers. December corn is down 1 1/4 cents per bushel and
December soybean meal is down $2.00. The Dow Jones Industrial Average is down
242.56 points and NASDAQ is down 239.75 points.
Live cattle contracts have seen some pressure jump in and out of the nearby
contracts; but as the day hits noon, the complex is trading mostly higher.
December live cattle are up $0.15 at $108.12, February live cattle are up $0.10
at $110.47 and April live cattle are up $0.27 at $113.80. As the week's cash
cattle market is seeing bids surface -s the morning's higher boxed beef prices
and higher trending futures market brings a sign of relief to feedlots. Bids of
$106 are still being offered in Kansas and bids of $104 live and $162 dressed
are offered in Nebraska. Thus far feedlots have opted to let the bids sit,
hoping packers get more aggressive as the day rolls into the afternoon.
Boxed beef prices are higher: choice up $1.00 ($208.32) and select up $3.10
($194.33) with a movement of 69 loads (34.55 loads of choice, 14.00 loads of
select, 6.76 loads of trim and 13.83 loads of ground beef).
Corn prices are rallying modestly scaling $0.01 higher in nearby contracts
and upward of $0.03 higher in deferred contracts, but the feeder cattle market
isn't seeming too worried. November feeders are up $0.77 at $136.50, January
feeders are up $1.32 at $132.72 and March feeders are up $1.10 at $132.07. For
cow-calf producers that have yet to market their calves, the position added
this week has been a relief. As the market tracks through the rest of the year,
producers will have to gauge how supply and demand are weighing on the market
and market their calves when buyers are hungry.
Hog prices are seeing a slight uptick in prices trailing into the day's
afternoon trade. With slight support for a modestly higher cash hog market and
an uptick in the day's midday cutout value, the market walk hand-in-hand as the
markets technical sides sees support from the fundamentals. December lean hogs
are up $0.62 at $66.27, February lean hogs are up $0.77 at $66.37 and April
lean hogs are up $0.37 at $68.70. The markets support is good for the market's
moral, but with the market still up against long-term resistance, a lower trend
is still anticipated.
The projected lean hog for 10/29/2020 is down $1.00 at $74.49, and the
actual index for 10/28/2020 is down $0.80 at $75.49. Hog prices are higher on
the National Direct Morning Hog Report, up $0.10 with a weighted average of
$61.76, ranging from $56.00 to $63.00 on 5,882 head and a five-day rolling
average of $61.62. Pork cutouts total 189.10 loads with 167.38 loads of pork
cuts and 21.72 loads of trim. Pork cutout values: up $0.95, $88.52.
ShayLe Stewart can be reached firstname.lastname@example.org
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