DTN Midday Livestock Comments          10/02 11:46

   Traders Push the Livestock Contracts Higher

   As the market charges into the day's afternoon, even though traders are 
eager and motivated currently to support the livestock contracts, they'll still 
closely look to see how both pork cutout values and boxed beef prices end the 
day.

ShayLe Stewart
DTN Livestock Analyst

GENERAL COMMENTS:

   Stronger trader interest is helping advance the entire livestock complex as 
all three of the markets are trading higher into Wednesday afternoon. No cash 
cattle trade has developed, but asking prices are now noted in the South at 
$187. December corn is up 3 1/4 cents per bushel and December soybean meal is 
down $6.60. The Dow Jones Industrial Average is up 11.14 points.

LIVE CATTLE:

   The live cattle complex is charging full steam ahead into Wednesday's noon 
hour as the market is pushing its nearby contracts $1.00 to $2.00 higher. With 
this type of technical momentum, feedlot managers are hoping to see the cash 
cattle complex trade higher again this week. It's been helpful earlier this 
week that boxed beef prices have traded higher, and even though today's midday 
prices are mixed, traders see it's supportive that at least choice cuts are up. 
Today's breakout move is quite impressive and puts the spot December contract 
right in line with where prices were before the equity meltdown early in 
August. Still no cash cattle sales have been reported, but asking prices are 
noted now in the South at $187. October live cattle are up $2.10 at $186.57, 
December live cattle are up $2.12 at $187.30 and February live cattle are up 
$1.77 at $187.97.

   Boxed beef prices are mixed: choice up $0.08 ($300.25) and select down $1.57 
($283.73) with a movement of 118 loads (83.60 loads of choice, 15.87 loads of 
select, zero loads of trim and 18.27 loads of ground beef).

FEEDER CATTLE:

   The feeder cattle complex is pushing even more of an aggressive rally than 
the live cattle complex as its nearby contracts are currently trading anywhere 
from $2.00 to $3.00 higher. The spot November contract is just a little over 
$2.00 away from hitting the market's 100-day moving average, which would be an 
impressive threshold to conquer. That's likely out of reach for today's trade 
but the contract is nearing that marker. October feeders are up $2.82 at 
$248.97, November feeder cattle are up $3.22 at $247.87 and January feeders are 
up $2.85 at $241.30.

LEAN HOGS:

   The lean hog complex is also rallying into Wednesday afternoon despite the 
fact that midday pork cutout values are slightly lower. More than anything 
traders seem to be willing to advance the lean hog complex as bullish, 
supportive tones have taken over the livestock complex today. However, without 
consumer interest and demand in terms of pork buying, the lean hog complex may 
not be able to maintain its higher trend for long. It will be imperative to 
monitor the afternoon's cutout price. October lean hogs are up $0.65 at $84.15, 
December lean hogs are up $1.40 at $76.00 and February lean hogs are up $1.07 
at $79.65.

   The projected lean hog index for 10/1/2024 is up $0.32 at $84.45, and the 
actual index for 9/30/2024 is up $0.12 at $84.13. Hog prices are lower on the 
Daily Direct Morning Hog Report, down $4.64 with a weighted average price of 
$73.35, ranging from $72.00 to $76.75 on 714 head and a five-day rolling 
average of $77.30. Pork cutouts total 152.17 loads with 138.85 loads of pork 
cuts and 13.32 loads of trim. Pork cutout values: down $0.38, $95.93.

   ShayLe Stewart can be reached shayle.stewart@dtn.com

    

    




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