DTN Midday Livestock Comments 10/23 11:48

DTN Midday Livestock Comments 10/23 11:48 Cattle Pedal Backwards as the Dow Dips Lower Still no cash cattle sales have been reported but asking prices are now being noted in the South at $190 plus. ShayLe Stewart DTN Livestock Analyst GENERAL COMMENTS: It's been a whiplash type of day for the livestock complex as at the start of Wednesday's session the market was trading fully higher as trader interest was robust and consumer demand remains ample. But with the U.S. dollar strengthening and the Dow Jones dipping over 300 points lower ahead of Wednesday's noon hour, technical pressure set in over the livestock complex as traders worry about the equity markets and export opportunities. December corn is up 2 1/4 cents per bushel and December soybean meal is up $1.70. The Dow Jones Industrial Average is down 353.91 points. LIVE CATTLE: Watching the live cattle complex trade Wednesday morning has been bewildering and, yet again, another example of just how fast traders can change their minds and turn the market's direction. Early Wednesday morning, the livestock complex was thriving as traders were pushing all three of the markets higher. But upon seeing the Dow Jones break and turn lower, the livestock contracts, including the live cattle market, all turned lower. The spot December contract broke resistance Wednesday morning before turning lower, which begs one question: Was the market's turns solely because of external equity pressures? Or did traders also decide the market doesn't have enough steam behind it to take on its current resistance thresholds? Time will tell, but for today, skepticism has settled into the marketplace. There still hasn't been any news of cash cattle trade developing, but asking prices are noted in the South at $190-plus and remain unestablished still in the North. Trade won't likely develop until Thursday at the earliest. December live cattle are down $0.70 at $187.42, February live cattle are down $0.70 at $188.12, and April live cattle are down $0.72 at $188.77. Boxed beef prices are higher: choice up $0.08 ($324.08) and select up $1.37 ($296.17) with a movement of 67 loads (43.92 loads of choice, 16.77 loads of select, zero loads of trim and 6.59 loads of ground beef). FEEDER CATTLE: Without the live cattle market's support, the feeder cattle complex is also trading lower and is currently trading anywhere from $1.00 to $2.00 lower. The spot January contract is back below its 100-day moving average as the market simply didn't have the trader support it needed to sustain being above the market's moving average. November feeders are down $1.85 at $247.07, Janauy feeders are down $2.27 at $243.87, and March feeders are down $2.70 at $242.17. LEAN HOGS: The lean hog complex was also affected by the day's external equity pressure but has quickly zipped back to higher prices and is currently trading fully higher into Wednesday's noon hour. The strength behind the lean hog market's rally is robust and thankfully the day's higher note of morning cutout prices being higher doesn't hurt either. December lean hogs are up $0.97 at $80.10, February lean hogs are up $0.65 at $83.45, and April lean hogs are up $0.37 at $86.60. The projected CME Lean Hog Index for 10/22/2024 is up $0.32 at $84.66, and the actual index for 10/21/2024 is up $0.11 at $84.34. Hog prices are higher on the Daily Direct Morning Hog Report, up $0.33 with a weighted average price of $75.51, ranging from $70.00 to $79.00 on 674 head and a five-day rolling average of $74.81. Pork cutouts total 188.53 loads with 169.49 loads of pork cuts and 19.05 loads of trim. Pork cutout values: up $1.13, $98.40. ShayLe Stewart can be reached shayle.stewart@dtn.com (c) Copyright 2024 DTN, LLC. All rights reserved.