|
DTN Midday Livestock Comments 11/06 11:51
Support from the Equity Market Drives the Livestock Contracts Higher
Asking prices are now noted in the South at $190 to $192, but are still not
established in the North and no bids have been offered yet.
ShayLe Stewart
DTN Livestock Analyst
GENERAL COMMENTS:
The livestock complex is trading mostly higher into Wednesday's noon hour as
the complex is thriving thanks to the added support of the equity markets
surge. No bids are currently on the table, but asking prices are noted in the
South at $190 to $192. December corn is up 6 1/4 cents per bushel and December
soybean meal is down $2.30. The Dow Jones Industrial Average is up 1,353.24
points.
LIVE CATTLE:
As the live cattle complex watches the equity market thrive and the Dow
Jones trading consistently around 1,300 points higher this morning -- traders
are back to mildly supporting the live cattle complex even though the market
was pressured earlier this week. December live cattle are up $0.62 at $185.40,
February live cattle are up $0.85 at $186.80 and April live cattle are up $0.65
at $187.65. Still no cash cattle trade has developed, but asking prices are now
being noted in parts of Kansas at $190 to $192. It is expected that the cash
cattle market will trade slightly lower this week as packers have been able to
buy up inventory over the last couple of weeks, which lessens their need to be
as aggressive in the cash sector this week.
Boxed beef prices are lower: choice down $0.36 ($316.85) and select up $1.49
($283.75) with a movement of 86 loads (42.83 loads of choice, 14.77 loads of
select, 4.89 loads of trim and 23.43 loads of ground beef).
FEEDER CATTLE:
Earlier today the feeder cattle market was trading sharply higher when corn
prices were trading lower, but now that the nearby corn contracts are trading
$0.05 to $0.06 higher the market is trading in a moderately higher manner.
November feeders are up $1.37 at $247.52, January feeders are up $1.35 at
$243.70 and March feeders are up $0.77 at $241.27. But with the live cattle
market's higher trend, the feeder cattle market should be able to maintain
these higher levels through the day's end as technical support is ample.
LEAN HOGS:
The lean hog complex is trading mixed into Wednesday's noon hour as the
market tries to grasp what is next to come with another Trump Presidency.
Earlier today the market seemed anxious as the U.S. dollar showed some strength
which could affect export opportunities later down the road. And with Mexico
being one of the largest buyers of U.S. pork, keeping that relationship open
and workable for sales remains important for the hog sector. But thankfully the
market has again turned higher as it's hard for the market not to thrive when
the equity sector is rallying as aggressively as it is. December lean hogs are
up $0.40 at $81.52, February lean hogs are up $0.55 at $85.07 and April lean
hogs are up $0.25 at $88.35.
The projected lean hog index for 11/5/2024 is up $0.45 at $90.24, and the
actual index for 11/4/2024 is up $0.41 at $89.79. Hog prices are higher on the
Daily Direct Morning Hog Report, up $1.91 with a weighted average price of
$84.30, ranging from $78.00 to $87.00 on 2,004 head and a five-day rolling
average of $82.82. Pork cutouts total 146.96 loads with 129.63 loads of pork
cuts and 17.33 loads of trim. Pork cutout values: up $1.75, $103.18.
ShayLe Stewart can be reached shayle.stewart@dtn.com
(c) Copyright 2024 DTN, LLC. All rights reserved.
DTN offers additional daily information available free through DTN Snapshot – sign up today.
|
|