DTN Midday Livestock Comments 12/11 11:48

DTN Midday Livestock Comments 12/11 11:48 Traders Push the Cattle Contracts to Long Term Resistance Points Although the market saw some light cash cattle trade in the South on Tuesday, no new trade has been reported at this point. ShayLe Stewart DTN Livestock Analyst GENERAL COMMENTS: The livestock complex is again trading mixed into Wednesday's noon hour as the cattle contracts are rallying, but the hog complex is again trading lower as consumer demand isn't coming to fruition. No new cash cattle trade has been noted at this point. March corn is up 1 1/2 cents per bushel and January soybean meal is down $0.60. The Dow Jones Industrial Average is up 6.23 points. LIVE CATTLE: It's been an eye-opening morning for the live cattle complex as traders have pushed the nearby contracts to resistance levels and showing their support of the market's desire to continue to grind higher. With the support of the cash cattle market mixed with the industry's impeccable beef demand -- traders haven't shown market nervousness throughout the day as they continue to advance the futures complex. December live cattle are up $0.77 at $190.62, February live cattle are up $0.80 at $189.85 and April live cattle are up $0.75 at $191.40. Following Tuesday's thin trade in the Southern Plains, no new cash cattle trade has been reported throughout Wednesday's market. So far this week, Southern live cattle have been marked at $191 which is steady to $1.00 higher than last week's weighted average. Asking prices for Southern cattle remain firm at $192 plus, but are still not known in the North. Boxed beef prices are mixed: choice up $0.21 ($311.94) and select down $0.64 ($279.01) with a movement of 62 loads (41.82 loads of choice, 19.01 loads of select, zero loads of trim and 1.63 loads of ground beef). FEEDER CATTLE: It's been another energetic day for the feeder cattle complex as the contracts are nearing resistance thresholds in many of the nearby contracts. It will be a "nail-biter" of an afternoon as traders rack their brains and look over the market's overall position as they try to determine if moving beyond resistance is a sound strategic move. From a fundamental standpoint, traders nearly have all the support they could ever want. Fed cash cattle prices are strong and buyer demand for calves and feeders is utterly incredible. The hang up in this market seems to be trader buy-in as it's somewhat unnerving to think that the market needs to go higher when prices are already trading at historical levels. But hey -- what's bull market without a little disbelief that prices could continue to trade even higher? January feeders are up $0.80 at $258.12, March feeders are up $1.17 at $258.62 and April feeders are up $0.87 at $259.22. LEAN HOGS: The lean hog complex is continuing to trade lower as unfortunately the market hasn't found enough consumer support to justify turning the market's direction. February lean hogs are down $0.20 at $84.35, April lean hogs are down $0.60 at $88.30 and June lean hogs are down $0.80 at $99.35. Across the board pork cutout prices are mixed, but the morning's $4.37 decline in the belly mixed with the $2.46 drop in the ham have pulled the carcass prices lower. The projected lean hog index for 12/10/2024 is up $0.29 at $83.61, and the actual index for 12/9/2024 is down $0.13 at $83.33. Hog prices are higher on the Daily Direct Morning Hog Report, up $1.85 with a weighted average price of $82.43, ranging from $76.00 to $84.00 on 1,904 head and a five-day rolling average of $81.50. Pork cutouts total 158.75 loads with 137.38 loads of pork cuts and 21.37 loads of trim. Pork cutout values: down $0.65, $92.49. ShayLe Stewart can be reached shayle.stewart@dtn.com (c) Copyright 2024 DTN, LLC. All rights reserved.