DTN Midday Livestock Comments 10/21 12:11
Mixed Monday Livestock Complex
Cattle markets are mixed while hog prices are in reach of higher Monday
By ShayLe Stewart
DTN Livestock Analyst
Overall Monday has opened to more of an optimistic market than many
expected. Cattle contracts keep trading higher and then lower but lean hog
futures are overall stronger. December corn is down 1 3/4 cents per bushel and
December soybean meal is up $0.10. The Dow Jones Industrial Average is up 34.69
points and NASDAQ is up 67.87
Live cattle contracts show flurries of support and then instances of
retreating behavior Monday morning. Largely the live cattle sector is trading
anywhere from $0.10 to $0.30 higher in all months except for April 2020 down
$0.07, and February 2021 down $0.90. Monday cash cattle trade is taking the
usual, uninteresting route with no asking prices or bids circulating yet.
Midday boxed beef prices are mixed: choice up $1.50 ($219.54) and select
down $0.03 ($193.01). Monday's midday offering of boxed beef movement only
totals 52 loads (30.59 loads of choice cuts, 8.20 loads of select cuts, 5.20
loads of trim and 8.16 loads of ground beef).
Feeder cattle markets are becoming more and more pressured as the noon hour
arrives. Markets traded higher early Monday morning, but have came back down to
open levels as still now no word from the Cargill plant in Dodge City, Kansas,
has surfaced, and long strings of calves continue to come to town. November
feeder cattle are down $0.05 at $142.80 and all nearby and deferred markets
show little trading interest and hardly any support.
Though cattle markets are still indecisive, lean hog contracts have
squandered no time Monday morning. All nearby and deferred contracts are
trading $0.12 to $0.97 higher. December lean hogs are trading $0.50 higher at
$68.45 and February 2020 hogs are trading $1.05 higher at $78.52. News was
shared this morning that China is seeking $2.4 billion worth of penalties
against the U.S. at the World Trade Organization for annual penalties in a case
over Chinese subsidies dating back before the Trump administration. This comes
at an inconvenient time as both parties try to negotiate the Phase One trade
The projected lean hog index for 10/18/19 is down $0.11 at $65.53, and the
actual for 10/17/19 came to $65.64 up $0.74. Prices are lower on the National
Direct Morning Hog Report, down $0.93 with a weighted average of $55.77,
ranging from $51.00 to $58.00 on 4,405 head sold and a five-day rolling average
of $57.81. Pork cutouts totaled 111.58 loads with 99.97 loads of pork cuts and
11.61 loads of trim. Pork cutout values are up $1.61 at $78.64.
ShayLe Stewart can be reached email@example.com
Copyright 2019 DTN/The Progressive Farmer. All rights reserved.
Get your local Cash Bids emailed to you each morning from DTN – click here
to sign up for DTN Snapshot.