Weather |  Futures |  Market News |  Portfolio |  Grain |  Charts |  Markets Page 
  About Us  
  Cash Bids  
  Our Team  
  Protein Scales  
  Job Openings  
  NR Propane Tanks  

Printable Page Market News   Return to Menu - Page 2 3 4 5 6 7 8 9 10
DTN Midday Livestock Comments          10/26 11:40

   Live Cattle Contracts Hunger for More

   After rallying modestly Monday, the live cattle contracts have hit Tuesday's 
trade more ambitious than the day before.

ShayLe Stewart
DTN Livestock Analyst


   Tuesday's trade has favored the cattle contracts and unfortunately left the 
hog contracts to plunder lower. The advancements seen throughout the cattle 
complex Monday were undoubtedly taken, but the market was somewhat disappointed 
that the bullish Cattle on Feed report, shared on Friday, didn't do more. If 
Tuesday's trade can keep with the pace that it's entering the afternoon with, 
the market may see the rest of the upward progression that some thought Monday 
lacked. December corn is up 7 3/4 cents per bushel and December soybean meal is 
up $1.10. The Dow Jones Industrial Average is up 68.94 points and NASDAQ is up 
59.15 points.


   The live cattle contracts quivered early Tuesday morning, seemingly unsure 
if the market would support another day of higher trade, but as the morning has 
progressed, the contracts have grown in strength and the December live cattle 
contract has managed to keep above the 40-day moving average of $129.12. 
December live cattle are up $0.52 at $130.05, February live cattle are up $0.52 
at $135.27 and April live cattle are up $0.42 at $138.17. The recent uptick 
trend in the boxed beef market, along with the confidence that's prevailing 
throughout the futures market, may be the backing that the cash cattle market 
has needed to demand higher prices. Thus far, the market has yet to see any 
trade develop as packers haven't offered up any bids, and the only asking 
prices noted at this time are in the South at $126-plus. With last week's total 
negotiated cash cattle movement totaling 78,746 head, and of that 79% of the 
cattle being procured for the nearby delivery, this could indicate that 
packers' supplies are getting closer to the knife, and they may need to dip 
into the cash cattle market with more support than what's recently been seen. 
Bids could begin to develop Tuesday afternoon but it's more likely that they 
will develop midday Wednesday.

   Boxed beef prices are mixed: choice up $2.10 ($285.14) and select down $0.04 
($263.15) with a movement of 66 loads (23.32 loads of choice, 11.97 loads of 
select, 3.43 loads of trim and 27.74 loads of ground beef).


   The $0.08 rally in the nearby corn contracts has paused (but not fully done 
away with) the excited nature that originally developed in the feeder cattle 
contracts Tuesday morning. The market is currently maintaining a respectable 
$0.42 to $0.62 gain in the early 2022 contracts where feeder cattle supplies 
are anticipated to be thin. November feeder cattle are up $0.02 at $158.50, 
January feeders are up $0.52 at $159.12 and March feeders are up $0.62 at 
$160.27. If the live cattle market can maintain its current strength into the 
later part of the week and demand higher cash cattle prices, the feeder cattle 
market may be able to rally upon its momentum.


   The lean hog complex is continuing to bleed red figures as the market 
struggles to summon any substantial support. One may be quick to point out the 
midday pork cutout value is up $2.24 ($100.51), but more times than not, when 
we put too much faith in the midday figure, the market's afternoon pork cutout 
comes to haunt us. December lean hogs are down $1.27 at $72.92, February lean 
hogs are down $1.17 at $75.60 and April lean hogs are down $1.15 at $79.52. 

   The projected lean hog index for Oct. 25 is down $0.32, at $82.66, and the 
actual index for Oct. 22 is down $0.72, at $82.98. Hog prices are lower on the 
National Direct Morning Hog Report, down $0.39 with a weighted average of 
$63.25, ranging from $62.00 to $66.00 on 5,350 head and a five-day rolling 
average of $64.59. Pork cutouts total 157.76 loads with 130.14 loads of pork 
cuts and 27.62 loads of trim. Pork cutout values: up $2.24, $100.51.

   ShayLe Stewart can be reached

(c) Copyright 2021 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.
Copyright DTN. All rights reserved. Disclaimer.
Prices subject to change without notice. All prices based Niles; Station differentials to apply
Powered By DTN