DTN Midday Livestock Comments          12/06 12:03

   Slowing Getting Stronger as Noon Hour Approaches. 

   Cattle contracts started weak early Friday morning, but as the day 
progresses, interest builds while the cash market is still yet to really be 
established. 

By ShayLe Stewart
DTN Livestock Analyst

General Comments

   Livestock contracts opened Friday morning to trade significantly lower in 
both the live cattle and feeder cattle contracts while the lean hog market too 
got to business and secured gains right out of the gate. Now as the noon hour 
approaches, contracts have warmed up and all three sectors are trading mostly 
higher. March corn is down 1 1/2 cents per bushel and January soybean meal is 
down $2.60. The Dow Jones Industrial Average is up 331.62 points and NASDAQ is 
up 86.35 points. 

   LIVE CATTLE 

   This week's cash cattle trade may end up like a long drawn-out movie. 
Patiently building the scene of packers needing cattle, feeders having the 
cattle and the never-ending battle of how much are they really worth keeping 
the two at ends of a long tug-a-war battle. Early Friday morning the live 
cattle complex was bearish and not favorable to cattle feeders -- though 
regardless of how the board trades packers need enough cattle that they will 
most likely end up paying higher prices regardless. But as time ticks on the 
board has picked up its tempo and is trading just slightly higher. December 
live cattle are up $0.12 at $120.04, February live cattle are up $0.25 at 
$124.85 and April live cattle are up $0.05 at $125.22. One bid has surfaced in 
Nebraska at $118 -- which is significantly lower than asking prices, $121 plus 
in the South and $190 to $193 in the North. Grab your soda pop and popcorn 
because trade will most likely break loose any time now and it will probably be 
for higher money.  

   Boxed beef prices are mixed: choice down $0.42 ($225.18) and select is up 
$0.17 ($208.29) with a movement of 77 loads (43.78 loads of choice, 14.51 loads 
of select, 5.07 loads of trim and 13.99 loads of ground beef). 

   FEEDER CATTLE 

   Trading much higher than that initially marked Friday morning, feeder cattle 
contracts are looking for support and building as the day progress on. January 
feeders are up $0.67 at $141.17, March feeders are up $0.47 at $141.62 and 
April feeders are up $0.60 at $143.72. 

   LEAN HOGS 

   The lean hog complex rebounded from Thursday's weaker close and is trading 
mostly higher as the 12 o'clock strikes near. December lean hogs are down $0.02 
at $61.55, February lean hogs are up $0.30 at $67.87 and April lean hogs are up 
$0.37 at $73.87. Given that cutout prices are still posting gains, it wouldn't 
be surprising to see the closing hog report show higher and steady cash trade 
through Friday's final sales. 

   The projected lean hog index for 12/5/19 is up $0.15 at $58.49, and the 
actual index for 12/4/19 came back at $58.34, up $0.14. Higher yet again are 
hog prices on the National Direct Morning Hog Report, up $0.06 with a weighted 
average of $46.73, ranging from $41.00 to $47.94 on 7,535 head sold and 
five-day rolling average of $45.44. Pork cutouts totaled 198.79 loads with 
183.47 loads of pork cuts and 15.32 loads of trim. Pork cutout values are up 
$1.06 at $82.42. 

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


(AG)

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