DTN Midday Livestock Comments 12/04 11:44

DTN Midday Livestock Comments 12/04 11:44 Bids Surface in Nebraska, But No Cash Cattle Sales Reported Yet Traders seem to hold the livestock contracts from trading any higher as they look for fundamental support to surface. ShayLe Stewart DTN Livestock Analyst GENERAL COMMENTS: The livestock complex has hit a bit of a speed bump midweek as traders want to see more fundamental support develop before they can confidently advance the contracts. Bids have surfaced in Nebraska, but still no cattle have traded. March corn is down 1 1/4 cents per bushel and January soybean meal is up $0.60. The Dow Jones Industrial Average is up 197.26 points. LIVE CATTLE: Traders seem to be tapping their toes and holding their breath as they wait for this week's cash cattle trade to develop. At this point the futures complex is idle, trading slightly lower as traders need to see what's going to develop fundamentally this week in the fed cattle sector. It was impressive that feedlot managers were able to get cattle traded for $3.00 to $5.00 higher last week, and it's assumed that cattle will trade steady to somewhat higher again this week. If feedlot managers don't get offered the money they're hopeful to see, it's likely that they'll just roll this week's showlist over to next week as they're current enough in their inventory to do so. December live cattle are steady at $188.47, February live cattle are down $0.70 at $188.37 and April live cattle are down $0.67 at $190.47. A few bids are now on the table in parts of Nebraska where packers are currently offered $190 live and $295 dressed. Asking prices for Southern cattle are firm at $192 to $194 but are still not established in the North. Boxed beef prices are lower: choice down $2.07 ($308.76) and select down $0.37 ($274.96) with a movement of 97 loads (67.19 loads of choice, 15.36 loads of select, 7.19 loads of trim and 7.64 loads of ground beef). FEEDER CATTLE: The feeder cattle complex is back to trading slightly lower as traders seem to be holding the market hostage until they see what's going to develop in this week's fed cash cattle market. Traders can't point to the sales in the countryside and cry over a lack of demand as buyer demand has been utterly incredible -- which continues to be evidenced by the market's CME feeder cattle index which closed at $259.38 just yesterday afternoon. The feeder cattle market has been leading the cattle complex's charge here as of late, but it seems as though traders are beginning to look around and need to see a little more market reassurance before they pressure the market's resistance anymore. January feeders are down $1.90 at $257.40, March feeders are down $1.45 at $255.82 and April feeders are down $1.30 at $256.82. LEAN HOGS: The lean hog complex is yet again sinking lower as the market simply isn't receiving the fundamental support it needs in order to confidently trade higher. Given that most of the nearby contracts are up against resistance levels -- and in some contract's cases -- up against the contract's lifetime high, traders desperately need more fundamental reassurance if they're going to be able to push the technical side of the market any higher. And given that that support hasn't come to fruition, a lower trend isn't unexpected. December lean hogs are down $0.52 at $82.72, February lean hogs are down $1.45 at $86.40 and April lean hogs are down $1.37 at $90.95. The projected lean hog index for 12/3/2024 is up $0.01 at $84.07, and the actual index for 12/2/2024 is down $0.30 at $84.06. Hog prices are higher on the Daily Direct Morning Hog Report, up $1.83 with a weighted average price of $88.40, ranging from $78.00 to $90.00 on 3,311 head and a five-day rolling average of $87.00. Pork cutouts total 219.58 loads with 173.38 loads of pork cuts and 46.20 loads of trim. Pork cutout values: down $0.08, $89.53. ** As a new administration prepares to take office in the U.S., 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 You can also see more about the upcoming Summit at https://www.dtnpf.com/agriculture/web/ag/videos/reporters-notebook?embedCode=rn2 024x15&channelTab=Reporter%E2%80%99s%20Notebook ShayLe Stewart can be reached shayle.stewart@dtn.com (c) Copyright 2024 DTN, LLC. All rights reserved.