DTN Midday Livestock Comments          09/20 11:43

   Cash Cattle Prices Jump $2.00 Higher

   Northern dressed cattle are currently being reported at $290 and Southern 
live cattle are trading at $183 -- both of which are $2.00 higher than last 
week's weighted average.

ShayLe Stewart
DTN Livestock Analyst

GENERAL COMMENTS:

   With the cash cattle market noting prices $2.00 higher in both the Northern 
and Southern plains, both the live cattle and feeder cattle markets are 
rallying into Friday's noon hour. Later this afternoon the monthly Cattle on 
Feed report will be released which could affect trade early next week. December 
corn is down 3 1/4 cents per bushel and December soybean meal is down $4.70. 
The Dow Jones Industrial Average is up 31.83 points.

LIVE CATTLE:

   With the cash cattle market seeing prices being reported $2.00 higher in 
both regions, traders are celebrating the fact that the market's fundamentals 
are helping add to their supportive note this week and are once again advancing 
the contracts higher. October live cattle are up $1.75 at $181.75, December 
live cattle are up $1.70 at $182.85 and February live cattle are up $1.15 at 
$183.55. It was just this week that the market conquered its 40-day moving 
average in the spot December contract, and now the market is close to nearing 
its 100-day moving average which would be one heck of a technical feat. But 
this is a great lesson that when the market's fundamentals and technical 
components support one another, a change in direction is possible. There have 
been a few cash cattle sales in the North at $290 which is $2.00 higher than 
last week's weighted average, and some live sales have been noted in the South 
at $183 which is also $2.00 higher than last week's weighted average. Some 
Northern cattle have been requested for delivery as soon as next 9/30/2024 
indicating that packers are shorter bought than they'd ideally like. Please 
note that later this afternoon the monthly Cattle on Feed report will be 
released.

   Boxed beef prices are higher: choice up $1.11 ($300.67) and select up $1.33 
($289.59) with a movement of 82 loads (56.81 loads of choice, 6.17 loads of 
select, 5.75 loads of trim and 13.51 loads of ground beef).

FEEDER CATTLE:

   With the support of a higher trending live cattle complex and the cash 
cattle market easily trading $2.00 higher on fed cattle, the feeder cattle 
complex is again rallying into the day's noon hour. Not only is it praiseworthy 
that the feeder cattle complex is rallying ahead of a Cattle on Feed report, 
but from a technical standpoint, the market is showing confidence as traders 
just advanced the spot October contract beyond its 40-day moving average which 
the market hasn't traded above since July. It seems as though the market is 
taking on a more bullish approach thanks to the Fed's interest rate 
announcement earlier this week, and then combined with the support of better 
trader interest and higher fed cash cattle prices -- the feeder cattle market 
is well supported. October feeders are up $0.55 at $244.22, November feeders 
are up $0.57 at $241.92 and January feeders are up $0.87 at $237.00.

LEAN HOGS:

   After rallying aggressively earlier this week, the nearby lean hog contracts 
are showing some late-week exhaustion but thankfully the deferred contracts are 
continuing to press onward. October lean hogs are down $0.05 at $82.20, 
December lean hogs are down $0.12 at $74.17 and February lean hogs are up $0.15 
at $77.47. Not helping matters is the fact that pork cutout values are slightly 
lower, and more than anything traders seem to be hitting the pause button on 
the complex until next week as they've already pushed the nearby contracts to 
prices not last seen since June.

   The projected lean hog index for 9/19/2024 is down $0.02 at $84.36 and the 
actual index for 9/18/2024 is up $0.16 at $84.38. Hog prices are higher on the 
Daily Direct Morning Hog Report, up $2.14 with a weighted average price of 
$78.45, ranging from $75.00 to $80.00 on 1,137 head and a five-day rolling 
average of $76.82. Pork cutouts total 146.20 loads with 131.73 loads of pork 
cuts and 14.47 loads of trim. Pork cutout values: down $0.31, $94.50.

    

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

    

    




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