| |
DTN Midday Livestock Comments 10/03 11:47
Traders Timid Following Wednesday's Aggressive Push in Livestock Complex
Bids of $294 are currently being offered in Nebraska but still no cattle
have sold.
ShayLe Stewart
DTN Livestock Analyst
GENERAL COMMENTS:
Following Wednesday's aggressive technical surge, the livestock complex is
trading fully lower into Thursday's noon hour as traders hope fundamental
support rises and reassures them of yesterday's move. Still no cash cattle
trade has developed, but bids are noted in Nebraska currently at $294. December
corn is down 1 1/4 cents per bushel and December soybean meal is down $3.90.
The Dow Jones Industrial Average is down 144.26 points.
Beef net sales of 22,500 mt for 2024 were up noticeably from the previous
week and up 68% from the prior 4-week average. The three largest buyers were
South Korea (7,900 mt), China (6,200 mt) and Mexico (2,800 mt). Pork net sales
for 43,400 mt for 2024 were up 55% from the previous week and 61% from the
prior 4-week average. The three largest buyers were Mexico (24,000 mt), China
(7,900 mt) and Canada (2,900 mt).
LIVE CATTLE:
The live cattle complex is trading lower into Thursday's noon hour as the
market patiently waits to see what feedlot managers accomplish this week in the
cash sector. After rallying the contracts aggressively through Wednesday's end,
traders are scanning the market today desperately looking for fundamental
support to reassure them of their move. But with midday boxed beef prices
mixed, and no substantial cash cattle sales having developed yet, the market is
quiet and mundane at this point. October live cattle are down $0.85 at $186.57,
December live cattle are down $1.20 at $186.50 and February live cattle are
down $0.92 at $187.47. Bids of $294 live are currently being offered in
Nebraska, but otherwise, the cash market is sitting idle as feedlot managers
wait for packers to get more aggressive. At this point, it's likely that the
bulk of the week's trade could be delayed until Friday as packers and feedlot
managers again go-rounds about what the week's trade should shake out to be.
Boxed beef prices are mixed: choice down $0.32 ($299.49) and select up $0.55
($284.48) with a movement of 84 loads (44.72 loads of choice, 17.72 loads of
select, 8.61 loads of trim and 13.24 loads of ground beef).
FEEDER CATTLE:
With the live cattle complex trading lower and the fed cash cattle market
not having seen any trade yet, the feeder cattle market is trading moderately
lower into Thursday's noon hour as the market waits to see if any support is
going to surface. October feeders are down $1.57 at $248.15, November feeders
are down $1.10 at $247.47 and January feeders are down $0.27 at $241.80. Also
adding some technical pressure to the feeder cattle market is the fact that
Wednesday's sharply higher jump put the spot November contract near the
market's 100-day moving average which is a major resistance point for the
complex.
LEAN HOGS:
Following Wednesday's sharply higher close, the lean hog complex is trading
slightly lower as traders look to the market's fundamentals to reassure them
that Wednesday's move was merited. October lean hogs are down $0.65 at $84.02,
December lean hogs are down $0.52 at $76.22 and February lean hogs are down
$0.35 at $79.80. It is encouraging that pork exports were up 55% from the
previous week and that morning pork cutout values are higher -- but with how
aggressively traders ran Wednesday's market higher, they're slow to add any
position to the market again today.
The projected lean hog index for 10/2/2024 is up $0.45 at $84.90, and the
actual index for 10/1/2024 is up $0.32 at $84.45. Hog prices are higher on the
Daily Direct Morning Hog Report, up $1.38 with a weighted average price of
$74.73, ranging from $73.00 to $76.50 on 665 head and a five-day rolling
average of $77.09. Pork cutouts total 153.32 loads with 130.62 loads of pork
cuts and 22.70 loads of trim. Pork cutout values: up $0.17, $95.19.
ShayLe Stewart can be reached shayle.stewart@dtn.com
(c) Copyright 2024 DTN, LLC. All rights reserved.
Get your local Cash Bids emailed to you each morning from DTN – click here to sign up for DTN Snapshot.
|
|
