DTN Midday Livestock Comments 10/31 11:56

DTN Midday Livestock Comments 10/31 11:56 Monday Off to Cautious Start With the grain complex rallying and USDA having technical difficulties, Monday isn't off to a great start. ShayLe Stewart DTN Livestock Analyst GENERAL COMMENTS: The livestock complex is off to a mixed start as both the live cattle and feeder cattle contracts trade lower, concerned about the grain market rally; but lean hog contracts are trading modestly higher. USDA is having technical difficulties Monday morning so most of the reports are unavailable. December corn is up 4 3/4 cents per bushel and December soybean meal is down $3.80. The Dow Jones Industrial Average is down 90.69 points. LIVE CATTLE: The live cattle complex is trending lower into Monday afternoon as the market waits patiently to see what the grain complex does this afternoon, and to see how the market's fundamentals shape up early this week. December live cattle are down $0.67 at $152.35, February live cattle are down $0.37 at $155.95, and April live cattle are down $0.15 at $159.07. After rallying to new highs, traders have drawn back from the live cattle market as they're waiting to see how the market fundamentals hold up amid an uncertain economy. Thankfully, the cash cattle market has been resilient and boxed beef demand has strengthened noticeably as of late. If these factors continue to hold true this week, traders may think about supporting the contracts again. New showlists appear to be mixed, higher in Texas, somewhat higher in Nebraska/Colorado, but lower in Kansas. Boxed beef prices are unavailable at this time due to the USDA's technical difficulties. FEEDER CATTLE: With the grain complex pushing an aggressive front with Monday's arrival, veteran traders and cattle feeders aren't surprised to see the feeder cattle complex venturing lower. November feeders are down $0.20 at $177.67, January feeders are down $0.87 at $179.50 and March feeders are down $0.80 at $181.70. The market won't likely be able to trade higher until two things happen: 1) The live cattle market lends support and trades higher itself; and 2) The grain market's rally subsides. LEAN HOGS: Even though the cattle contracts are off to a slow, lower start, the lean hog complex is trading mostly higher except for its spot December contract. December lean hogs are down $0.52 at $85.57, February lean hogs are up $0.17 at $89.02, and April lean hogs are up $0.82 at $93.52. With the market being far enough away from resistance that it can trade higher without pressure immediately looming, the market will likely keep with this moderate upward trek through the day's afternoon. And with the Thanksgiving holiday nearing, pork producers are hoping that hog products will sell better and better though the month of November as holiday family meals near. The projected CME Lean Hog Index is delayed from the source, and the morning cash hog prices and pork cutout values are unavailable due to technical difficulties of the USDA's. 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.