DTN Midday Livestock Comments 11/29 11:40

DTN Midday Livestock Comments 11/29 11:40 Cattle Continue to Trend Higher While Hogs Slip Lower A single bid of $191 has been renewed in Nebraska, but at this point, it's looking like the bulk of this week's trade is done with. ShayLe Stewart DTN Livestock Analyst GENERAL COMMENTS: Both the live cattle and feeder cattle contracts are trading higher into Friday's noon hour as the market has seen tremendous fundamental support this past week. The lean hog complex isn't as lucky today as its nearby contracts are trading lower. No new cash cattle trade has been noted at this point, but a bid of $191 has been renewed in Nebraska. March corn is up 4 1/4 cents per bushel and January soybean meal is down $3.00. The Dow Jones Industrial Average is up 321.50 points Friday's export sales report shared that beef net sales of 4,800 mt for 2024 -- a marketing year low -- were down 66% from the previous week and 61% from the prior four-week average. The three primary buyers were China (1,500 mt), Mexico (800 mt) and Japan (800 mt). Pork net sales of 17,200 mt for 2024 were down 5% from the previous week, but up 1% from the prior 4-week average. The three primary buyers were Mexico (8,300 mt), Japan (2,100 mt) and Colombia (1,900 mt). LIVE CATTLE: The live cattle complex continues to trade higher as the market is well supported by traders in the technical sense, and fundamentally through the cash cattle market's strong performance this week. Holiday weeks are always a gamble as packers are either nonchalant in the marketplace not seeming to need many cattle on a holiday-shortened kill week, or they're aggressive like they had to be this week. But given that this week's cash cattle trade ranged anywhere from $3.00 to $5.00 higher -- it's safe to say that packers are short bought and thankfully feedlot managers were awake behind the wheel and didn't miss out on an opportunity to advance the market even though they had to juggle the Thanksgiving holiday midweek. December live cattle are up $0.32 at $188.32, February live cattle are up $0.35 at $188.95 and April live cattle are up $0.67 at $191.10. So far this week, Southern live cattle were sold for mostly $190, which is $3.00 to $4.00 higher than last week's weighted average. Northern dressed cattle sold for mostly $295, which is $5.00 higher than last week's weighted average. Bids of $191 have surfaced again in Nebraska, but no new sales have been reported. Some clean-up trade could develop ahead of today's close, but it looks like the bulk of this week's trade is done with. Boxed beef prices are mixed: choice down $0.04 ($311.22) and select up $1.60 ($275.90) with a movement of 39 loads (27.50 loads of choice, 4.88 loads of select, zero loads of trim and 6.53 loads of ground beef). FEEDER CATTLE: Even though the nearby corn contracts are trading $0.03 to $0.05 higher, the feeder cattle market doesn't currently seem to have a care in the world as support is plentiful for the market right now. Between the announcement earlier this week that Mexican cattle imports would be restricted because of the detection of New World screwworm found in a cow in Southern Mexico, the market's support has been widespread as traders, cattlemen and everyone in between seem to be acknowledging the market's current power and strength. January feeders are up $1.07 at $259.85, March feeders are up $1.72 at $259.02 and April feeders are up $1.60 at $260.00. LEAN HOGS: The lean hog complex isn't seeing the support it would like as packers are appearing to be done buying in the cash hog market this week, and although morning pork cutout values are up slightly, traders aren't willing to put much clout in that factor as prices were stressed earlier this week. Not to mention, most of the nearby contracts ran to new contract highs earlier this week and so for the market to find itself in a position where the nearby contracts are venturing lower after a holiday isn't that surprising. December lean hogs are down $0.47 at $81.92, February lean hogs are down $1.52 at $86.40 and April lean hogs are down $0.80 at $90.82. The projected lean hog index for 11/27/2024 is down $0.30 at $85.21, and the actual index for 11/26/2024 is down $0.39 at $85.51. Hog prices are lower on the Daily Direct Morning Hog Report, down $3.92 with a weighted average price of $83.44, ranging from $80.00 to $88.00 on 1,119 head and a five-day rolling average of $86.85. Pork cutouts total 145.90 loads with 128.03 loads of pork cuts and 17.87 loads of trim. Pork cutout values: up $0.85, $89.79. ** As a new administration prepares to take office, farmers are preparing for the next growing season. In this year's DTN Ag Summit, we'll examine the state of national farm policy, including timing on a farm bill, makeup of the ag committees and new leadership at USDA. A few of the winners of this year's America's Best Farmers and Ranchers award share what they've learned from selling directly to consumers, and the DTN markets and weather team will offer their perspective on what's in store for 2025. The DTN Ag Summit is scheduled for Dec. 5-6, 2024. Use this link to sign up: https://dtn.link/DTNAgSummit2024 ShayLe Stewart can be reached shayle.stewart@dtn.com (c) Copyright 2024 DTN, LLC. All rights reserved.