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DTN Midday Livestock Comments          10/27 13:22

   Cattle Contracts Trading Fully Higher

   It's been a prosperous morning for most of the livestock market as cattle 
contracts are trading fully higher and though support has been shaky for the 
lean hog market, it looks as though support is gaining as the afternoon 
approaches.

ShayLe Stewart
DTN Livestock Analyst

   The livestock complex has reaped the benefits from the support surfacing 
throughout Tuesday morning's trade. Cattle contracts have steadily traded 
higher all throughout the day, but the lean hog complex has been a bit touchy 
-- trading higher and lower throughout the morning. December corn is down 2 1/4 
cents per bushel and December soybean meal is down $3.80. The Dow Jones 
Industrial Average is down 84.96 points and NASDAQ is up 64.04 points.

   LIVE CATTLE

   With live cattle prices faring better than expected, feeders are hopeful to 
push cash cattle trade to the end of the week and bat for at least steady 
prices. December live cattle are up $0.30 at $103.70, February live cattle are 
up $0.15 at $106.55 and April live cattle are up $0.87 at $110.37. The mixed 
trade in boxed beef prices will still make getting much of a premium off last 
week's trade difficult as packers are seeing lower retail prices -- but steady 
trade isn't out of the question. Bids and asking prices are still elusive and 
it's very likely that this week's trade won't develop until after Wednesday's 
online auction.

   Boxed beef prices are mixed: choice down $0.29 ($207.54) and select up $0.55 
($189.04) with a movement of 119 loads (64.12 loads of choice, 20.62 loads of 
select, 13.23 loads of trim and 21.18 loads of ground beef).

   FEEDER CATTLE

   The feeder cattle market took the brunt of last week's downward spiral but 
come Tuesday the market is taking full advantage of the building support. 
November feeder cattle are up $2.40 at $132.87, January feeder cattle are up 
$2.35 at $129.12 and March feeders are up $2.25 at $128.67. Helping support the 
market is the slight regression in the nearby corn contracts and traders being 
willing to step back into the market and leave their sideline position. Feeder 
cattle and calves sold mostly lower throughout the countryside Monday 
afternoon, but it was interesting to see sale receipts lower than the previous 
week. As cow-calf producers saw a weaker market they revaluated their marketing 
strategy, and some decided to wait a little longer for a better market.

   LEAN HOGS

   Finding support has been touch and go for the lean hog market as cattle 
contracts seem to be drawing more trader interest. As the lean hog market 
starts to face some resistance, it makes sense that traders would be more prone 
to looking at the cattle contracts as they've scaled considerably lower here 
recently. December lean hogs are steady at $67.75, February lean hogs are up 
$0.22 at $67.87 and April lean hogs are down $0.10 at $69.97. Following 
Monday's weaker pork cutout close, Tuesday's midday cutout looks promising for 
a stronger close, but the market has been facing some regression in cutout 
values as of late.

   The projected lean hog index for 10/23/2020 is down $0.37 at $78.17 and the 
actual index for 10/22/2020 is down $0.06 at $78.54. Hog prices are higher on 
the National Direct Morning Hog Report, up $0.81 with a weighted average of 
$61.32, ranging from $56.00 to $61.32 on 4,276 head and a five day rolling 
average of $60.08. Pork cutouts total 198.41 loads with 179.42 loads of pork 
cuts and 18.99 load of trim. Pork cut out values: up $3.03, $94.89.

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




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