DTN Midday Livestock Comments 09/27 11:33

DTN Midday Livestock Comments 09/27 11:33 Cattle Continue to Rally Thanks to the Cash Market's Support Heading into Friday's noon hour the cattle complex is trading higher while the lean hog market continues to drift lower and grumble about Thursday's Quarterly Hogs and Pigs Report. ShayLe Stewart DTN Livestock Analyst GENERAL COMMENTS: With the snappy $2.00 to $4.00 advancement in the cash cattle market, it's not surprising to see both the live cattle and feeder cattle markets trading mostly higher. No new sales have been noted at this point which likely means that the bulk of this week's trade is essentially done with. December corn is up 6 cents per bushel and December soybean meal is up $13.80. The Dow Jones Industrial Average is up 269.60 points. LIVE CATTLE: Thanks to the fundamental support seen this week from the cash cattle complex, the live cattle market is trading mostly higher into Friday's noon hour. Some of the furthest deferred contracts are trading slightly lower, but overall, the market is flush with optimism thanks to the cash market's $2.00 to $4.00 advancement yet again this week. No new cash cattle trade has been noted at this point which likely means that the bulk of this week's trade is done with. However, on Thursday Southern live cattle sold for $185 which is $2.00 higher than last week's weighted average and Northern dressed cattle traded at mostly $294 which is $4.00 higher than last week's weighted average. Asking prices for cattle left on showlists are around $186 plus in the South and $295 plus in the North. October live cattle are up $0.25 at $184.35, December live cattle are up $0.15 at $184.97 and February live cattle are up $0.25 at $185.90. Boxed beef prices are mixed: choice up $0.50 ($296.87) and select down $0.11 ($282.26) with a movement of 72 loads (48.82 loads of choice, 11.59 loads of select, zero loads of trim and 11.48 loads of ground beef). FEEDER CATTLE: The feeder cattle complex is rallying into Friday's noon hour as the market feels well supported by the cattle complex fundamental gains this week. With the live cattle contracts trading higher and the fed cash cattle market able to rally another $2.00 to $4.00 higher this week, feeders are seeing ample support. October feeders are steady at $246.90, November feeders are up $0.55 at $245.57 and January feeders are up $0.52 at $239.27. Some of the deferred cattle contracts are trading slightly lower, but at this point, the market's nearby contracts aren't pressured. LEAN HOGS: Following Thursday's Quarterly Hogs and Pigs Report, the lean hog complex is continuing to trade lower as traders are concerned about pork demand amid a 5% increase compared to a year ago on hogs weighing 180 pounds or more. Thankfully today's midday carcass prices are indeed higher, but traders are concerned that that won't be the trend moving forward as front-end supplies of market-ready hogs are exuberant which will likely cause the carcass prices to fall and cash prices as well. And because of those fears and concerns, traders are letting the contracts drift lower into Friday afternoon. October lean hogs are down $0.30 at $81.72, December lean hogs are down $1.00 at $72.95 and February lean hogs are down $0.67 at $77.20. The projected lean hog index for 9/26/2024 is down $0.04 at $84.03 and the actual index for 9/25/2024 is up $0.02 at $84.07. Hog prices are lower on the Daily Direct Morning Hog Report, down $1.16 with a weighted average price of $76.60, ranging from $76.00 to $77.00 on 2,206 head and a five-day rolling average of $76.29. Pork cutouts total 206.07 loads with 191.68 loads of pork cuts and 14.39 loads of trim. Pork cutout values: up $1.19, $95.83. ShayLe Stewart can be reached shayle.stewart@dtn.com (c) Copyright 2024 DTN, LLC. All rights reserved.