DTN Midday Livestock Comments 10/21 11:40

DTN Midday Livestock Comments 10/21 11:40 Will Packers Get More Aggressive Before Friday's End? The live cattle market is anxiously waiting to see if packers are going to get more aggressive before the week's end. ShayLe Stewart DTN Livestock Analyst GENERAL COMMENTS: The livestock complex is trading mostly higher into Friday's afternoon as the market runs into the week's final hours supported in nearly every sense. The big question heading into the afternoon is: will more cattle trade in the North, and how will the afternoon's Cattle on Feed report affect next week's market? December corn is up 1 3/4 cents per bushel and December soybean meal is up $2.00. The Dow Jones Industrial Average is up 373.77 points. LIVE CATTLE: The live cattle complex is trading mostly higher into Friday's afternoon even though the market has seen some slight pressure throughout the morning's hours. December live cattle are up $0.10 at $151.77, February live cattle are down $0.07 at $154.77 and April live cattle are up $0.10 at $157.67. The biggest nailbiter about Friday's market is the cash cattle sector. It's been a very long time since we've seen bids being offered on a Friday, but given that packers weren't able to buy many cattle in the North on Thursday, they're still asking around seeing what's available and if any feedlots will let some cattle go. At this point, the market has yet to trade anything more, and unless packers get more aggressive, they may be slightly short bought coming out of this week. So far this week, Southern live transactions have been at mostly $148, $3.00 higher than last week's weighted averages. Northern dressed sales were at mostly $236, $4.00 higher than last week's weighted average basis Nebraska. Boxed beef prices are higher: choice up $0.11 ($253.73) and select up $3.51 ($225.59) with a movement of 49 loads (33.54 loads of choice, 5.44 loads of select, zero loads of trim and 9.71 loads of ground beef). FEEDER CATTLE: The feeder cattle complex is trading higher into Friday's afternoon even though the live cattle market is trading mixed and corn is higher. It's very likely that the feeder cattle market keeps with its modestly higher trend through closing as the market is uncertain about its immediate future. If corn prices can trend no higher than steady -- while the live cattle market takes off and trades higher amid a rallying cash cattle market -- then, in time, the feeder cattle market will also be able to rally as more profits will be seen by feeders. In the meantime, with corn prices as high as they are, there's little margin for buyers to be had at this point. November feeders are up $0.45 at $178.00, January feeders are up $0.70 at $179.95 and March feeders are up $0.47 at $181.92. LEAN HOGS: The resistance at $88.00 hasn't weakened Friday's market as the December contract is trading well into the $89.00 range. The market has seen phenomenal support this past week both technically and fundamentally and as demand continues to funnel into the market from buyers domestically and internationally; the market's morale has changed significantly. December lean hogs are up $2.72 at $89.77, February lean hogs are up $1.62 at $90.72 and April lean hogs are up $0.97 at $94.10. Given that the market is seeing this much support while breaking into the afternoon, it's very likely that the momentum is kept through closing and stands a chance at even carrying into next week. The projected lean hog index is unavailable at this time. Hog prices are undefined on the Daily Direct Morning Hog report because of Thursday's delay in reporting, all the report shares is that 2,500 head have traded this morning and that the five-day rolling average now sits at $91.34. Pork cutouts total 204.52 loads with 187.27 loads of pork cuts and 17.25 loads of trim. Pork cutout values: down $1.26, $102.61. ShayLe Stewart can be reached shayle.stewart@dtn.com ** Cattlemen are eager for supply and demand mechanics to swing their way, but the market isn't completely free of hurdles as bearish concerns about the U.S. and global economies loom. Hear DTN Livestock Analyst ShayLe Stewart's thoughts on the 2023 cattle market at the all-virtual DTN Ag Summit on Dec. 12-13. Full details available at http://www.dtn.com/agsummit (c) Copyright 2022 DTN, LLC. All rights reserved.