DTN Midday Livestock Comments 11/12 11:43

DTN Midday Livestock Comments 11/12 11:43 Support From Equity Markets Helps Drive Livestock Contracts Higher Asking cash cattle prices of $188 to $189 are currently noted in the South, but Northern feedlots have yet to establish their asking prices. ShayLe Stewart DTN Livestock Analyst GENERAL COMMENTS: The livestock complex is trading mostly higher into Tuesday's noon hour as the uptick in the equity markets is helping drive positive momentum throughout the livestock contracts. Still no cash cattle trade has developed but asking prices are noted in the South at $188 to $189. December corn is down 2 cents per bushel and December soybean meal is down $0.90. The Dow Jones Industrial Average is down 253.65 points. LIVE CATTLE: Originally the live cattle complex was reluctant to trade higher but as Tuesday progressed traders have changed their tune and now the market is modestly higher into Tuesday's noon hour. Seeming to help add a little additional fundamental support is the higher note of morning boxed beef prices, which was the theme throughout Monday's trade as well. It's still too early in the week for any cash cattle trade to have developed, but it's expected that prices will be steady at best. Asking prices are noted in the South at $188 to $189 but are still not established in the North. The change in the market's direction has thankfully pulled the spot December contract away from its 100-day moving average, which continues to be a threshold the market is contemplating. December live cattle are up $0.80 at $184.47, February live cattle are up $0.80 at $186.17, and April live cattle are up $0.95 at $187.70. Boxed beef prices are higher: choice up $0.61 ($308.82) and select up $0.36 ($282.20) with a movement of 71 loads (39.79 loads of choice, 22.43 loads of select, zero loads of trim and 8.80 loads of ground beef). FEEDER CATTLE: With the live cattle market's support, the feeder cattle complex is also trading higher into Tuesday's noon hour as the market continues to follow closely in line with whatever the live cattle market does. November feeders are up $0.35 at $246.50, January feeders are up $0.95 at $243.20, and March feeders are up $1.17 at $241.22. The spot January contract is trading slightly above both its 100-day and 40-day moving averages, but the market will need continued support if it's going to maintain its elevated position through Tuesday's end and later this week. LEAN HOGS: It's interesting to watch the dynamics currently in the lean hog complex as the nearby contracts are trading slightly higher, but the deferred months are trending mostly lower. From a solely fundamental sense, you'd expect the hog complex to be trading slightly lower as this morning yet again pork cutout values are lower because of a significant drop in the belly (down $8.92) and there has not been enough competition in the cash market for hog prices to even be reported. But with the equity markets thriving, the nearby contracts are choosing to continue to trade higher. December lean hogs are up $0.70 at $82.47, February lean hogs are up $0.45 at $86.35, and April lean hogs are down $0.07 at $89.90. The projected CME Lean Hog Index for 11/11/2024 is down $0.14 at $89.88, and the actual index for 11/8/2024 is down $0.41 at $90.02. Hog prices are unavailable on the Daily Direct Morning Hog Report because of confidentiality. However, we can see that only 3,563 head have traded and that the market's five-day rolling average now sits at $84.01. Pork cutouts total 196.68 loads with 181.65 loads of pork cuts and 15.02 loads of trim. Pork cutout values: down $2.23, $99.23. ShayLe Stewart can be reached shayle.stewart@dtn.com (c) Copyright 2024 DTN, LLC. All rights reserved.