DTN Midday Livestock Comments 09/30 12:23
The Lean Hog Market Pulls Wednesday's Attention
With corn prices jumping significantly higher, cattle contracts have
regressed heading into Wednesday afternoon trade.
DTN Livestock Analyst
Cattle contracts were trading modestly higher Wednesday morning but as the
noon hour approached both the live and feeder cattle contracts have taken a
turn for lower prices and in an abrupt manner as the feeder cattle market sees
as much as a $2.30 loss. With the announcement of Germany finding more wild
boars carrying ASF and corn prices jumping as much as $0.16 to $0.17 per
bushel, the attention has left the cattle complex and is focusing on lean hogs
and corn. December corn is up 16 cents per bushel and December soybean meal is
up $13.30. The Dow Jones Industrial Average is up 502.96 points and NASDAQ is
up 176.29 points.
The market's attention for the cattle contracts has disappeared as there's
more concern about the ASF cases in Germany and feeders want to get an
understanding of the corn market's rally. Meanwhile live cattle contracts are
trading lower but not as steeply as the feeder cattle complex. October live
cattle are down $0.32 at $108.70, December live cattle are down $0.42 at
$112.72 and February live cattle are down $0.35 at $115.87. Cash cattle trade
remains at an utter standstill even after the day's online auction. Some early
asking prices are noted in the South at $109, and bids of $167 are offered in
Iowa but trade has yet to develop.
The Fed Cattle Exchange Auction listed a total of 901 head, of which 358
actually sold, but 543 head were listed as PO (Passed Offer). The state by
state breakdown looks like this: Kansas 142 total head (1 lot), with 142 head
listed as PO ($104.00); Nebraska 214 total head (1 lot), with 214 head sold at
$106.00; Texas 545 total head (3 lots), with 144 head sold at $106.00, and 401
head listed as PO ($104.00). The delivery date/weighted averages breakdown is
as listed: 1-9-day delivery: 543 head total, all passed, and 1-17-day delivery
358 head total all sold at $106.00.
Boxed beef prices are higher: choice up $1.48 ($218.64) and select up $0.94
($207.93) with a movement of 97 loads (59.57 loads of choice, 15.60 loads of
select, 6.88 loads of trim and 15.12 loads of ground beef).
Feeder cattle contracts are taking the brunt of Wednesday's blow, seeing as
much as $2.22 losses as the complex barley broke above the $144 resistance
plane before shooting lower. October feeder cattle are down $1.50 at $141.37,
November feeder cattle are down $2.10 at $141.67 and January feeders are down
$1.95 at $139. Pressuring the feeder cattle complex tremendously is the corn
market's rally as corn prices are jumping up as much as $0.15 to $0.16 per
Just when the market wondered if the hype surrounding the ASF cases in
Germany was dying down, news broke Wednesday morning that two additional wild
boars were found positive with the disease. Upon hearing the news, the hope of
export opportunity is helping boost the lean hog market. October lean hogs are
up $0.12 at $72.50, December lean hogs are up $1.37 at $63.35 and February lean
hogs are up $1.32 at $68.32.
The projected lean hog index for 9/29/2020 is up $0.63 at $76.54 and the
actual index for 9/28/2020 is up $0.49 at $75.91. Hog prices are lower on the
National Direct Afternoon Hog Report, down $0.02 with a weighted average of
$63.90, ranging from $60.00 to $66.00 on 5,815 head and a five-day rolling
average of $64.31. Pork cutouts total 190.09 loads with 167.25 loads of pork
cuts and 22.84 loads of trim. Pork cutout values: down $0.55, $91.20.
ShayLe Stewart can be reached email@example.com
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