DTN Midday Livestock Comments          12/06 12:27

   Southern Live Cattle Trade for $191

   Traders finally saw the added support they needed when the cash cattle 
market began to trade $1.00 to $2.00 higher.

ShayLe Stewart
DTN Livestock Analyst

GENERAL COMMENTS:

   The livestock complex is again rallying into Friday's noon hour as 
fundamental support has surfaced. So far Southern live cattle are selling for 
$191 which is $1.00 to $2.00 higher than last week's weighted average, and bids 
have been renewed in Nebraska following Thursday's light trade, but no more 
dressed sales have been reported. March corn is up 5 1/2 cents per bushel and 
January soybean meal is down $3.10. The Dow Jones Industrial Average is down 
54.66 points.

LIVE CATTLE:

   The combination of higher cash cattle trade mixed with stronger boxed beef 
prices was just the right mix of added confidence that the market needed to 
trade higher. December live cattle are up $0.50 at $187.47, February live 
cattle are up $0.27 at $186.60 and April live cattle are up $0.27 at $188.82. 
Although it took a while to develop, feedlot managers have again been rewarded 
with their patience in the marketplace as Southern live cattle traded for $191 
which is $1.00 to $2.00 higher than last week's weighted average, and some 
feedlot managers are still committed to not trading any cattle until their 
initial asking price of $192 is met. On Thursday afternoon some light dressed 
trade developed at $297 in Nebraska which is $2.00 higher than last week's 
weighted average. More trade will likely develop throughout the afternoon as 
this week's movement has been limited.

   Boxed beef prices are higher: choice up $4.08 ($311.92) and select up $0.56 
($277.66) with a movement of 89 loads (58.87 loads of choice, 10.20 loads of 
select, 7.78 loads of trim and 12.13 loads of ground beef).

FEEDER CATTLE:

   The feeder cattle complex is again back to trading higher as the market has 
been relieved to see the added support of this week's cash cattle trade. 
Traders have seen plenty of support from feeder cattle sales in the countryside 
as prices continue to grind higher, but they wanted to see some support from 
the fed cattle market as they feared that they could be getting ahead of 
themselves in the market's bullish push. January feeders are up $1.50 at 
$256.42, March feeders are up $2.35 at $254.95 and April feeders are up $1.35 
at $255.97.

LEAN HOGS:

   The lean hog complex is also rallying into Friday's noon hour as the market 
is pleased to see higher pork cutout values. February lean hogs are up $0.95 at 
$87.30, April lean hogs are up $0.55 at $91.70 and June lean hogs are up $0.22 
at $101.85. The vast majority of the cutout values strength this morning did 
come from the belly's $7.17 jump, but the butt also rallied $4.22 and the loin 
jumped $3.53.

   The projected lean hog index 12/5/2024 is down $0.20 at $83.73, and the 
actual index for 12/4/2024 is down $0.15 at $83.93. Hog prices are unavailable 
on the Daily Direct Morning Hog Report because of confidentiality. However, we 
can see that only 344 head have traded and that the market's five-day rolling 
average now sits at $87.84. Pork cutouts totaled 220.80 loads with 207.16 loads 
of pork cuts and 13.64 loads of trim. Pork cutout values: up $3.05, $91.69.

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

    




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