DTN Midday Livestock Comments          09/17 11:44

   Livestock Complex Trading Fully Higher into Tuesday's Noon Hour

   The livestock complex is trading fully higher into Tuesday's noon hour as 
traders are eager to support the livestock markets even though Monday's close 
was lower in the cattle market.

ShayLe Stewart
DTN Livestock Analyst

GENERAL COMMENTS:

   All three of the livestock contracts are trading higher into Tuesday's 
afternoon as the market has been met with ample trader interest. The cash 
cattle market hasn't seen bids or asking prices published yet, but trade isn't 
expected to develop until Wednesday or later. December corn is up 1/2 cent per 
bushel and December soybean meal is down $3.10. The Dow Jones Industrial 
Average is up 32.85 points.

LIVE CATTLE:

   The live cattle complex is trading fully higher into Tuesday's noon hour as 
the market is currently well supported by traders. The spot December contract 
was trading above its 40-day moving average earlier this morning, but traders 
quickly backed the contract below that threshold as they aren't confident that 
there's enough support fundamentally backing that kind of an aggressive 
technical leap. There's a chance that market could see the contract jump above 
that threshold later this week if cash cattle prices were to trade 
steady/somewhat higher -- but the problem about later this week is that 
Friday's Cattle on Feed report will likely cause traders to safety up and 
become more cautious in their demeanor. October live cattle are up $1.10 at 
$178.32, December live cattle are up $1.20 at $179.55 and February live cattle 
are up $1.07 at $180.55. Still no developments have surfaced in the cash cattle 
market and it's not likely that any trade will develop ahead of Wednesday at 
the absolute earliest.

   Boxed beef prices are mixed: choice down $0.89 ($303.68) and select up $0.35 
($292.49) with a movement of 106 loads (71.15 loads of choice, 16.41 loads of 
select, 10.50 loads of trim and 8.31 loads of ground beef).

FEEDER CATTLE:

   The feeder cattle complex is also trading higher as traders appreciate the 
spill over support that's currently coming from the live cattle market's higher 
trend. October feeders are up $1.60 at $240.60, November feeders are up $2.20 
at $237.77 and January feeders are up $2.10 at $232.77. Like the live cattle 
complex, the feeder cattle market's 40-day moving average remains a hurdle in 
which traders are leery to attempt to jump. If some strong fundamental support 
comes into play later this week there's a chance that the complex could conquer 
that threshold, but currently it appears to remain daunting for traders.

LEAN HOGS:

   The lean hog complex is also trading higher as the market continues to rally 
off Monday's impressive move. October lean hogs are up $1.57 at $81.50, 
December lean hogs are up $1.40 at $73.60 and February lean hogs are up $0.90 
at $76.57. Even with midday pork cutout values lower, traders are electing to 
advance the complex as technical support is more than sufficient enough at the 
time to push the market higher. Even so, traders will be closely monitoring 
closing pork cutout values as demand remains a key driver of the market.

   The projected lean hog index for 9/16/2024 is down $0.16 at $84.22 and the 
actual index for 9/13/2024 is down $0.49 at $84.38. Hog prices are higher on 
the Daily Direct Morning Hog Report, up $1.74 with a weighted average price of 
$76.74, ranging from $75.00 to $78.00 on 4,735 head and a five-day rolling 
average of $76.55. Pork cutouts total 152.17 loads with 144.09 loads of pork 
cuts and 8.08 loads of trim. Pork cutout values: down $0.27, $93.95.

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

    

    




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