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DTN Midday Livestock Comments 10/28 11:37

28 Oct 2022
DTN Midday Livestock Comments 10/28 11:37 Livestock Trades Mixed Into Friday's Afternoon Heading into the afternoon, the livestock complex isn't expecting too see much more develop in a technical sense as traders long to see what next week brings before investing into the markets any more. ShayLe Stewart DTN Livestock Analyst GENERAL COMMENTS: Thus far, the livestock complex has endured a mostly uneventful Friday as traders mildly support both the lean hog and feeder cattle contracts but continue to keep themselves at an arm's length distance from the live cattle contracts. The cash cattle market could see some more trade develop ahead of afternoon's close, but at this point packers have yet to offer any new bids. December corn is up 1 cent per bushel and December soybean meal is up $9.30. The Dow Jones Industrial Average is up 674.55 points. LIVE CATTLE: The live cattle complex is trading lower into Friday's afternoon as traders seem to be looking for more fundamental support before they pressure the market's resistance. Froom a fundamental sense, the market remains incredibly strong. Slaughter speeds have run aggressively this week, the cash cattle market saw a $2.00 to $5.00 advancement from last week's weighted averages and boxed beef prices have continue to print higher. The only slightly disappointing factor of this week's market was that the export report wasn't as significant as hoped. December live cattle are down $0.37 at $153.05, February live cattle are down $0.42 at $156.42 and April live cattle are down $0.17 at $159.32. So far this week, Southern live deals have been marked at mostly $150, $2 higher than last week's weighted averages. The majority of Northern dressed sales have been at $240, nearly $5 higher than last week's weighted average basis Nebraska. Given that the market hasn't seen may cattle trade, it wouldn't be unlikely to see some more business develop Friday afternoon. Boxed beef prices are higher: choice up $0.73 ($263.22) and select up $2.66 ($234.57) with a movement of 62 loads (35.91 loads of choice, 4.95 loads of select, 11.12 loads of trim and 10.02 loads of ground beef). FEEDER CATTLE: The feeder cattle complex is trading higher into Friday's afternoon as the market excels upon the corn market's midday weakness. The market's higher tone solely stems from its own internal strength as the live cattle complex is trading slightly lower. There are quite a few feeder cattle buyers who have yet to fulfill their orders, but even with needing to get more cattle bought, they're careful not to jump into the market uncalculatedly as they have little room for error with margins as thin as they are. November feeders are up $0.30 at $178.42, January feeders are up $0.42 at $180.87 and March feeders are up $0.45 at $182.90. LEAN HOGS: After closing substantially lower Thursday afternoon, the lean hog complex is trading modestly higher as the market is no longer up against resistance pressures. December lean hogs are up $0.50 at $85.62, February lean hogs are up $0.55 at $88.70 and April lean hogs are up $0.75 at $92.87. Helping matters too is that the midday pork cutout values is up substantially, but before the market gets too confident in that figure, it knows to the complex time and see how afternoon prices fair. The projected lean hog index for Oct. 27 is down $0.38 at $93.77, and the actual index for Oct. 26 is down $0.32 at $94.15. Hog prices are lower on the Daily Direct Morning Hog report, down $4.02 with a weighted average of $87.63, ranging from $87.00 to $93.00 on 2.069 head and a five-day rolling average of $94.04. Pork cutouts total 207.56 loads with 185.93 loads of pork cuts and 21.64 loads of trim. Pork cutout values: up $4.80, $103.26. ShayLe Stewart can be reached ** 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 (c) Copyright 2022 DTN, LLC. All rights reserved.