DTN Midday Livestock Comments 09/29 11:48

DTN Midday Livestock Comments 09/29 11:48 Livestock Complex Finally Sees Some Support The livestock complex is rolling into Thursday's afternoon fully higher and anxiously waiting to see the Quarterly Hogs and Pigs report, which is released Thursday afternoon. ShayLe Stewart DTN Livestock Analyst GENERAL COMMENTS: With the surprisingly strong export report for both beef and pork, the livestock complex has traded mostly higher throughout Thursday's market. Thursday afternoon the Quarterly Hogs and Pigs report will be released. December corn is down 1/4 cent per bushel and December soybean meal is down $4.50. The Dow Jones Industrial Average is down 429.30 points. LIVE CATTLE: Upon seeing the day's strong export report, the live cattle market is rallying modestly into Thursday's afternoon. After a brutal week when crashing commodity sales have been the market's focus, as well as the greater economic uncertainty, seeing even the smallest essence of support is relieving to the live cattle market. October live cattle are up $0.70 at $143.75, December live cattle are up $0.82 at $147.07 and February live cattle are up $0.65 at $150.82. The cash cattle market hasn't seen any interest from packers arise at this point and it's likely that the majority of the week's business is done with. With packers having bought over 116,000 head last week, they now sit on enough inventory to let this week's market mostly pass them by. Throughout the week, Northern dressed cattle have sold for mostly $228, which is $1.00 lower than last week's weighted average, and Southern live cattle have sold for $143, which is fully steady with last week's weighted average. Beef net sales of 21,500 mt for 2022 were primarily for South Korea (7,300 mt), China (6,000 mt) and Japan (3,500 mt). Boxed beef prices are mixed: choice down $0.63 ($246.92) and select up $0.65 ($219.86) with a movement of 85 loads (51.25 loads of choice, 15.94 loads of select, 8.44 loads of trim and 9.77 loads of ground beef). FEEDER CATTLE: Even with the corn market trading steady to $0.02 higher in its nearby contracts, the feeder cattle contracts are trading over $1.00 stronger into Thursday's afternoon. It's helping the feeder cattle market that both the live cattle and lean hog contracts are trending higher, but now the market will look to its fundamental side to hopefully garnish even more support. Feeder cattle sales have been extremely hit or miss throughout the countryside as drought related marketing strategies are having to be implemented by ranchers as u drought remains a prevalent factor on most operations in the West and Midwest. September feeders are up $0.32 at $175.70, October feeders are up $1.27 at $176.27 and November feeders are up $1.45 at $176.75. LEAN HOGS: The lean hog complex is rallying off the support found early Thursday morning in the day's strong export report. Hopefully this positive momentum continues to be the market's theme throughout the afternoon and the Quarterly Hogs and Pigs report displays a bullish outlook for the upcoming quarters, which would undoubtedly add more support to the market. October lean hogs are up $0.80 at $90.17, December lean hogs are up $0.55 at $76.37 and February lean hogs are up $0.65 at $80.12. It's tough saying whether or not the marekt has established a new bottom after sinking to prices not last seen since mid-December 2021 -- but based on how the market is trading today, slightly stronger tones are helping the market this Thursday. Pork net sales of 34,300 mt for 2022 were primarily for Mexico (23,700 mt), South Korea (2,900 mt) and China (2,000 mt). The projected lean hog index is delayed from the source. Hog prices are lower on the Daily Direct Morning Hog Report, down $0.81 with a weighted average of $88.44, ranging from $80.00 to $102.00 on 4,401 head and a five-day rolling average of $89.38. Pork cutouts total 134.32 loads with 120.53 loads of pork cuts and 13.80 loads of trim. Pork cutout values: down $0.46, $100.31. ShayLe Stewart can be reached shayle.stewart@dtn.com (c) Copyright 2022 DTN, LLC. All rights reserved.