DTN Midday Livestock Comments 12/04 12:10
Livestock Complex Leans Lower
The livestock contracts struggle to trade higher Wednesday morning while
both the lean hog and cattle cash markets show signs of positivity.
By ShayLe Stewart
DTN Livestock Analyst
The livestock complex still lags to find support to bolster prices higher,
but with time cash prices may boost higher trade and a positive outlook. March
corn is down 3 3/4 cents per bushel and January soybean meal is up $2.70. The
Dow Jones Industrial Average is up 172.58 points and NASDAQ is up 43.44 points.
Live cattle contracts struggle to any essence of support for the board early
Wednesday morning. December live cattle are down $1.02 at $119.52, February
live cattle are down $1.60 at $124.05 and April live cattle contracts are down
$1.50 at $124.72. The board quivers lower, but higher anticipated cash prices
may be able to boost morale later in the week. It's a positive sign for cattle
sold Wednesday morning on the Fed Cattle Exchange. Of the 1,189 head consigned
to the sale, 860 head sold for an average price of $118.36. Cash prices last
week ranged from $117 to $119 in the South, and upwards to $120 in the North;
given that the FCE prices landed smack dap in the middle of last week's prices,
feeder's may be able to push prices higher again later this week. Current
asking prices are open at $122 live, and $193-plus for dressed cattle. As of
now there is only one bid placed in Nebraska at $184 -- $9.00 lower than
current asking prices.
Boxed beef prices are lower: choice down $2.57 ($227.58) and select is down
$1.53 ($210.87) with a morning movement of 89 loads (54.52 loads of choice,
14.95 loads of select, 7.70 loads of trim and 11.39 loads of ground beef).
Feeder cattle markets plug lower, being only 25 cents shy of $2.00 lower in
some contracts. With a depressed board, and a surplus of calves in the sale
barns, it makes it tough for prices to rally during the holiday season. January
feeders are down $1.72 at $140.65, March feeders are down $1.80 at $141.12 and
April feeders are down $1.75 at $143.20. If cash cattle prices can rally the
marketplace higher later this week, feeder contracts may reciprocate some of
The board may have some indecisive contracts Wednesday morning that dipped
just slightly lower, but the cash momentum keeps building in the countryside.
December lean hogs are down $0.62 at $61.87, February lean hogs are down $0.30
at $68.05 and April lean hogs are up $0.05 at $74.32. You can add another case
of African swine fever to the list as the agriculture minister of Poland shared
that authorities had earlier this year killed nearly 270,000 wild boar in
eastern Poland in efforts to help stop the disease from spreading to domestic
herds and it was largely effective until this last month when authorities
stated that 20 more wild boar were killed with the disease.
The projected lean hog index for 12/03/19 is up $0.82 at $58.20, and the
actual index for 12/02/19 is up $0.03 at $57.38. Hog prices are higher again on
the National Direct Morning Hog Report, up $0.64 with a weighted average of
$45.66, ranging from $41.00 to $46.50 on 4,010 head sold and a five-day rolling
average of $43.94. Pork cutouts total 171.85 loads with 148.83 loads of pork
cuts and 23.01 loads of trim. Pork cutout values are up $0.74 at $81.35.
ShayLe Stewart can be reached email@example.com
Copyright 2019 DTN/The Progressive Farmer. All rights reserved.
Your local weather forecast from DTN can be sent to your email every morning free through DTN Snapshot