DTN Midday Livestock Comments 11/23 12:40
Livestock Contracts Jump at Opportunity to Trade Higher
Following last week's disappointing close, Monday's stronger trade was
welcome throughout the livestock markets.
DTN Livestock Analyst
The livestock complex is seeing an easy $1.00 to $3.00 rally across all
three markets Monday. The feeder cattle market is closely watching how much
stronger the corn market grows as $0.02 to $0.05 gains are seen entering the
afternoon. Monday morning saw some light cash cattle trade in Nebraska at
steady prices with a week ago. December corn is up 2 3/4 cents per bushel and
December soybean meal is up $2.30. The Dow Jones Industrial Average is up
182.14 points and NASDAQ is down 1.11 points.
The live cattle complex is liking Monday's attitude, which is regaining what
was lost last week and is being encouraged by positive announcements about more
COVID-19 vaccines and a bullish Cattle on Feed Report Friday. December live
cattle are up $2.15 at $110.22, February live cattle are up $2.50 at $113.15
and April live cattle are up $2.30 at $116.75. There was some light cash cattle
trade Monday morning in Nebraska at fully steady prices, but otherwise the
countryside has only seen light inquiry from packers. Given that this week is
shortened for the Thanksgiving holiday, cash cattle trade is expected to
develop earlier in the week. Showlists are larger this week in all the 5-state
Last week's negotiated cash cattle trade totaled 106,137 head. Of that
79,128 head are for delivery in the next two weeks while the remaining 27,009
head are for delivery in the following 15 to 30 days.
Boxed beef pries are mixed: choice up $4.09 ($242.44) and select down $0.45
($214.53) with a movement of 54 loads (24.79 loads of choice, 11.91 loads of
select, 5.35 loads of trim and 12.15 loads of ground beef).
Feeder cattle prices are regaining what was lost late last week as the
market rallies $2.50 to $3.00. January feeders are up $3.10 at $137.00, March
feeders are up $2.90 at $137.27 and April feeders are up $2.77 at $138.95. So
long as the corn market rally doesn't continue to soar into Monday afternoon,
the feeder cattle market should be able to capitalize on gains all throughout
Lean hog futures haven't seen much action over the last month as the market
is developing a low, but Monday's excitement has even trickled over into the
hog market and is helping rally nearby contracts $1.00 to $2.00 higher.
December lean hogs are up $1.37 at $65.50, February lean hogs are up $2.22 at
$67.57 and April lean hogs are up $2.27 at $70.47. What could potentially help
the hog market is long-term strength in the pork cutout value, as the market
has endured fluctuations in hog prices in the latter part of 2020.
The projected lean hog index for 11/20/2020 is down $0.31 at $67.83 and the
actual index for 11/19/2020 is down $0.63 at $68.14. Hog prices are lower on
the National Direct Afternoon Hog Report, down $1.02 with weighted average of
$57.81, ranging from $50.00 to $59.00 on 4,760 head and a 5-day rolling average
of $58.34. Pork cutouts total 280.08 loads with 261.03 loads of pork cuts and
19.04 loads of trim. Pork cutout values: up $0.78, $78.95.
ShayLe Stewart can be reached email@example.com
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