|
DTN Midday Livestock Comments 12/06 12:03
Slowing Getting Stronger as Noon Hour Approaches.
Cattle contracts started weak early Friday morning, but as the day
progresses, interest builds while the cash market is still yet to really be
established.
By ShayLe Stewart
DTN Livestock Analyst
General Comments
Livestock contracts opened Friday morning to trade significantly lower in
both the live cattle and feeder cattle contracts while the lean hog market too
got to business and secured gains right out of the gate. Now as the noon hour
approaches, contracts have warmed up and all three sectors are trading mostly
higher. March corn is down 1 1/2 cents per bushel and January soybean meal is
down $2.60. The Dow Jones Industrial Average is up 331.62 points and NASDAQ is
up 86.35 points.
LIVE CATTLE
This week's cash cattle trade may end up like a long drawn-out movie.
Patiently building the scene of packers needing cattle, feeders having the
cattle and the never-ending battle of how much are they really worth keeping
the two at ends of a long tug-a-war battle. Early Friday morning the live
cattle complex was bearish and not favorable to cattle feeders -- though
regardless of how the board trades packers need enough cattle that they will
most likely end up paying higher prices regardless. But as time ticks on the
board has picked up its tempo and is trading just slightly higher. December
live cattle are up $0.12 at $120.04, February live cattle are up $0.25 at
$124.85 and April live cattle are up $0.05 at $125.22. One bid has surfaced in
Nebraska at $118 -- which is significantly lower than asking prices, $121 plus
in the South and $190 to $193 in the North. Grab your soda pop and popcorn
because trade will most likely break loose any time now and it will probably be
for higher money.
Boxed beef prices are mixed: choice down $0.42 ($225.18) and select is up
$0.17 ($208.29) with a movement of 77 loads (43.78 loads of choice, 14.51 loads
of select, 5.07 loads of trim and 13.99 loads of ground beef).
FEEDER CATTLE
Trading much higher than that initially marked Friday morning, feeder cattle
contracts are looking for support and building as the day progress on. January
feeders are up $0.67 at $141.17, March feeders are up $0.47 at $141.62 and
April feeders are up $0.60 at $143.72.
LEAN HOGS
The lean hog complex rebounded from Thursday's weaker close and is trading
mostly higher as the 12 o'clock strikes near. December lean hogs are down $0.02
at $61.55, February lean hogs are up $0.30 at $67.87 and April lean hogs are up
$0.37 at $73.87. Given that cutout prices are still posting gains, it wouldn't
be surprising to see the closing hog report show higher and steady cash trade
through Friday's final sales.
The projected lean hog index for 12/5/19 is up $0.15 at $58.49, and the
actual index for 12/4/19 came back at $58.34, up $0.14. Higher yet again are
hog prices on the National Direct Morning Hog Report, up $0.06 with a weighted
average of $46.73, ranging from $41.00 to $47.94 on 7,535 head sold and
five-day rolling average of $45.44. Pork cutouts totaled 198.79 loads with
183.47 loads of pork cuts and 15.32 loads of trim. Pork cutout values are up
$1.06 at $82.42.
ShayLe Stewart can be reached shayle.stewart@dtn.com
(AG)
Copyright 2019 DTN/The Progressive Farmer. All rights reserved.
DTN offers additional daily information available free through DTN Snapshot – sign up today.
|
|