DTN Midday Livestock Comments 10/18 12:14

DTN Midday Livestock Comments 10/18 12:14 Cattle Futures Rally Friday Morning Firm triple-digit gains developed in both feeder cattle and live cattle futures Friday morning. The overall late-week support in futures trade is helping spark renewed interest. Rick Kment DTN Analyst GENERAL COMMENTS: Strong underlying support has held in all live cattle and most feeder cattle futures contracts during Friday morning trade. November through April feeder cattle contracts trading over $2 per cwt higher during the first few hours of the session helped spark renewed commercial buyer activity across the entire complex. Limited additional direction is likely to be seen in both cattle and hog futures through the end of the day as traders seem to be willing to carry current positions and price levels into next week. December corn is down 2 1/2 at $4.043 and December soybean meal is down $0.30 at $317.8. The Dow Jones Industrial Average is up 6.65 at 43,245.70. LIVE CATTLE: Live cattle futures continue to hold strong triple-digit gains at midday, following renewed buyer support seen early in the session. October live cattle futures are trading $1.20 per cwt higher at $1.87.82 per cwt, focusing on continued fundamental support and higher beef values at the end of the week. All nearby contracts are posting triple-digit gains, which may spark additional interest early next week. According to USDA's export sales report for the period of Oct. 4 to Oct. 10, beef net sales of 14,100 metric tons (MT) for 2024 were up 3% from the previous week, but down 9% from the prior 4-week average. Increases were primarily for Japan (4,600 MT), South Korea (2,600 MT), China (2,300 MT), Mexico (1,100 MT), and Taiwan (700 MT). Net sales of 900 MT for 2025 were reported for Japan (600 MT), Hong Kong (100 MT), the Philippines (100 MT), and Guatemala (100 MT). Exports of 15,300 MT were down 5% from the previous week and 2% from the prior 4-week average. The destinations were primarily to Japan (3,800 MT), South Korea (3,800 MT), China (1,900 MT), Mexico (1,400 MT), and Taiwan (1,000 MT). All is quiet in cash cattle country Friday morning following a light to moderate trade in most areas Thursday. Southern live deals were marked at $187 to $188, steady to $1 higher than last week's weighted averages, while Northern dressed sales took place at mostly $296, fully steady with the prior week's weighted averages. It looks as if the bulk of business is completed for the week, but some clean-up will take place here and there. So far, no bids have been renewed Friday, and asking prices for cattle left on showlists are around $189 to $190 in the South, and $298-plus in the North. Beef cutouts are expected to be higher with light to moderate box movement. October live cattle are $1.18 higher at $187.8, December live cattle are $1.38 higher at $187.55, February live cattle are $1.43 higher at $188.40. Boxed beef prices are higher: choice up $1.33 ($320.59) and select up $1.23 ($294.75) with a movement of 93.44 loads (67.56 loads of choice, 9.95 loads of select, 4.85 loads of trim and 11.08 loads of ground beef). FEEDER CATTLE: Feeder cattle futures are leading the livestock complex higher Friday morning with firm triple-digit gains in all nearby contract months. All contracts through April 2025 have traded at or above $2 per cwt gains through most of the morning, although slower movement at midday is causing gains to pull away from session highs. October futures are currently softening slightly, but the risk of significant market pressure still remains limited. October feeders are $1.63 higher at $248.35, November feeders are $2.05 higher at $247.8 and January feeders are $2.65 higher at $245.775. LEAN HOGS: Lean hog futures are trading higher, but with more limited optimism than the adjoining cattle complex. Gains of 35 to 60 cents per cwt are holding at midday with very limited additional direction likely to be seen across the complex. In the weekly export sales report released Friday morning, net sales of pork are reported at 38,100 MT for 2024 were down 25% from the previous week, but up 1% from the prior 4-week average. Increases were primarily for Mexico (8,900 MT, including decreases of 400 MT), Japan (7,800 MT, including decreases of 1,000 MT). Exports of 34,000 MT were up 49% from the previous week and 26% from the prior 4-week average. The destinations were primarily to Mexico (20,000 MT), Japan (3,500 MT), China (2,100 MT), Canada (1,800 MT), and South Korea (1,700 MT). December lean hogs are $0.28 higher at $77.95, February lean hogs are $0.48 higher at $82.025 and April lean hogs are $0.50 higher at $85.625. Hog Prices are lower on the Daily Direct Morning Hog report, down $3.68 with a weighted average of $72.03, ranging from $69.00 to $76.00 on 593 head with a five-day rolling average of $76.58. Pork Cutouts totaled 197.27 loads with 178.19 loads of pork cuts and 19.08 loads of trim. Pork cutout values are up $1.00 at $96.87. (c) Copyright 2024 DTN, LLC. All rights reserved.