DTN Midday Livestock Comments          09/18 11:36

   Live Cattle and Lean Hogs Sport Higher Prices into Wednesday's Noon Hour

   Still no cash cattle trade has developed, but packer interest could improve 
later this afternoon.

ShayLe Stewart
DTN Livestock Analyst

GENERAL COMMENTS:

   Both the live cattle and lean hog contracts are trading mostly higher into 
Wednesday's noon hour, but the feeder cattle market isn't as sold as its market 
is currently trading mixed. Still no cash cattle trade has developed, but 
packer interest should improve later this afternoon. December corn is up 1 3/4 
cents per bushel and December soybean meal is down $2.30. The Dow Jones 
Industrial Average is down 47.57 points.

LIVE CATTLE:

   The live cattle complex is trading mostly higher into Wednesday's noon hour 
as the market anticipates interest rates to be lowered this afternoon and 
believes that there's a strong chance that the cash cattle market could trade 
at least steady again this week. October live cattle are down slightly, but 
besides that contract, the entire rest of the marketplace is trading higher. It 
is also worth noting that the spot December contract is currently trading above 
its 40-day moving average, which has been a resistance point at which the 
market has struggled to hurdle over. October live cattle are down $0.22 at 
$178.57, December live cattle are up $0.15 at $180.00 and February live cattle 
are up $0.05 at $181.05. The cash cattle market is still quiet with no bids 
having developed yet. Asking prices are noted in the South at $184 to $185 but 
have not yet been established in the North.

   Boxed beef prices are lower: Choice down $0.36 ($303.55) and select down 
$0.61 ($291.61) with a movement of 107 loads (68.13 loads of choice, 28.85 
loads of select, zero loads of trim and 9.59 loads of ground beef).

FEEDER CATTLE:

   The feeder cattle complex is trading mixed as the market's nearby contracts 
seem to be holding their breath -- waiting to see how just how much interest 
rates are decreased by and waiting to see if the spot December live cattle 
contract can indeed close above its 40-day moving average. October feeders are 
down $0.82 at $239.92, November feeders are down $0.30 at $238.00 and January 
feeders are steady at $233.02. It's likely that the market will merely chop 
sideways through the afternoon as it waits to see what support (or lack 
thereof) stems from the live cattle market's trade today.

LEAN HOGS:

    

   Between seeing ample support from traders and the morning's positive note of 
stronger pork cutout values, the lean hog complex is trading higher into 
Wednesday's noon hour with ease. October lean hogs are up $0.25 at $82.07, 
December lean hogs are up $0.05 at $73.75 and February lean hogs are up $0.07 
at $76.87. I'm somewhat surprised to see that the morning's cash hog market has 
only traded 375 head as I thought that packers would need to be at least 
aggressive one more day this week to avoid being short bought. So, monitoring 
the afternoon's cash report will be important this afternoon.

   The projected lean hog index for 9/17/2024 is steady at $84.22, and the 
actual index for 9/16/2024 is down $0.16 at $84.22. Hog prices are unavailable 
on the Daily Direct Morning Hog Report due to confidentiality. However, we can 
see that only 375 head have traded, and that the market's five-day rolling 
average now sits at $76.55. Pork cutouts total 181.85 loads with 162.44 loads 
of pork cuts and 19.41 loads of trim. Pork cutout values: up $1.08, $96.08.

    

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

    

    




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