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DTN Midday Livestock Comments          10/29 12:19

   Cattle Contracts Rally Stronger into Thursday's Afternoon  

   The support throughout the cattle market continues to grow as both markets 
see contracts rallying $2.00 higher and cash cattle interest is slowly growing.

ShayLe Stewart
DTN Livestock Analyst

   General Comments

   With the earlier part of the week's trade being favorable to cattle 
contracts, concerns that the market's motivation would die off as the later 
part of the week arrived were valid but thankfully Thursday's trade has grown 
even more supportive of the cattle contracts! Meanwhile the lean hog complex is 
trading modestly lower following the morning's disappointing export report. 
December corn is down 2 1/2 cents per bushel and December soybean meal is up 
$0.30. The Dow Jones Industrial Average is up 63.12 points and NASDAQ is up 
145.59 points.

   LIVE CATTLE

   As boxed beef prices print higher and nearby contracts scale anywhere from 
$2.00 to $3.00 higher -- feedlots are soaking up the market's momentum and 
cherishing the fact that they didn't sell-out early in the week and miss the 
opportunity to trade cash cattle to their fullest potential. December live 
cattle are up $2.85 at $107.50, February live cattle are up $2.47 at $110.17 
and April live cattle are up $2.02 at $113.40. Bids of $106 are stuck to the 
table as packers don't want to offer more but feedlots are seeing the market's 
favor tip their way. In the last hours there's been a handful (very, very few) 
cattle sold in Texas and Kansas for $106 -- but the rest of the countryside 
seems willing to wait and hold out for stronger bids. Asking prices in the 
South hold steady at $108 and asking prices in the North are at $168.

   Beef net sales of 18,900 mt reported for 2020 were down 13% from the 
previous week and 6% from the prior four-week average. The three primary 
increases were for China (4,300 mt), Japan (4,200 mt, including decreases of 
200 mt) and South Korea (4,200 mt, including decreases of 1,500 mt).

   Boxed beef prices are higher: choice up $1.50 ($207.29) and select up $1.99 
($191.57) with a movement of 64 loads (35.24 loads of choice, 7.99 loads of 
select, 6.81 loads of trim and 13.80 loads of ground beef).

   FEEDER CATTLE

   The feeder cattle market is continuing to press forward and regain some of 
the position lost last week. November feeders are up $2.70 at $136.60, January 
feeders are up $1.52 at $131.47 and March feeders are up $1.55 at $131.07. The 
market was closely watching the corn market Thursday morning as corn export 
sales were robust and could have sent the complex trading higher. Thankfully 
the corn market has opted to continue to trade lower which is favorable to 
cattlemen.

   LEAN HOGS

   As the livestock market's attention falls to the cattle contracts, the lean 
hog market is left trading mildly lower into Thursday's afternoon trade. 
December lean hogs are down $0.70 at $65.67, February lean hogs are down $0.55 
at $65.65 and April lean hogs are down $0.42 at $68.32. Unfortunately as the 
lean hog market has seemed to reach its top, the market is being left high and 
dry to trade aimless lower.

   Pork net sales of 29,000 mt reported for 2020 were up 8% from the previous 
week, but down 24% from the prior four-week average.  The three primary 
increases were for Mexico (8,400 mt, including decreases of 1,500 mt), Japan 
(6,400 mt, including decreases of 200 mt) and South Korea (2,900 mt, including 
decreases of 400 mt).

   The projected lean hog index for 10/28/2020 is down $0.80 at $75.49, and the 
actual index for 10/27/2020 is down $1.20 at $76.29. Hog prices are not 
available on the National Direct Morning Hog Report due to packer submission 
problems. Pork cutouts total 145.74 loads with 97.00 loads of pork cuts and 
48.74 loads of trim. Pork cutout values: up $5.04, $89.56.

   ShayLe Stewart can be reached shayle.stewart@dtn.com

    

    




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