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DTN Midday Livestock Comments 10/09 11:45
Feeder Cattle Jump $3.00 Higher
No cash cattle trade has developed yet, but packer interest should improve
at any minute.
ShayLe Stewart
DTN Livestock Analyst
GENERAL COMMENTS:
The livestock complex is again trading mixed into midday Thursday, as the
cattle contracts are seeing a powerful rally (mainly being led by the ambitious
feeder cattle complex), but the lean hog contracts are trading lower. Still no
cash cattle trade has developed. December corn is down 2 cents per bushel and
December soybean meal is down $0.60. The Dow Jones Industrial Average is down
166.63 points and the NASDAQ is down 53.46 points.
LIVE CATTLE:
The live cattle complex is again following in the feeder cattle market's
wake, trading higher, with once again the market's deferred contracts seeing
the biggest gains. October live cattle are up $1.07 at $234.92, December live
cattle are up $0.47 at $239.35 and February live cattle are up $0.60 at
$242.82. With the spot December contract nearing the market's resistance at
$241, it will be interesting to see how traders handle that threshold, as not
only is it a resistance plane, but depending on how far traders would
potentially take the contracts, it could mean new record high prices for the
contracts as well. A single bid of $230 is currently on the table in Nebraska,
but still no cash cattle trade has developed as feedlot managers are hoping to
hold prices at least steady, and packers are obviously hoping to again work the
market lower. Asking prices are noted at $235 to $237 in the South but are
still not established in the North.
Boxed beef prices are higher: choice up $0.50 ($366.66) and select up $0.66
($345.90) with a movement of 67 loads (28.58 loads of choice, 18.37 loads of
select, 6.34 loads of trim and 13.52 loads of ground beef).
FEEDER CATTLE:
Rallying like it doesn't have a care or a concern in the world, the feeder
cattle contracts are pressing onward, pushing an aggressive $3.00 rally into
midday Thursday. On Wednesday afternoon, the market was pleased to successfully
reach new contract highs, which has seemed to fuel the market's ambition this
morning as traders have restlessly continued to push it higher and higher.
October feeder cattle are up $3.05 at $372.55, November feeder cattle are up
$3.22 at $372.05 and January feeders are up $3.27 at $366.80. Yes, seeing
stronger boxed beef prices is helping, and if the fed cash cattle market were
to trade steady to somewhat higher, that would be positive as well, but time
will tell if that support develops or not.
LEAN HOGS:
It's been another painstaking morning for the lean hog complex as support
isn't coming to fruition, and the contracts are struggling because of that.
October lean hogs are down $0.42 at $97.20, December lean hogs are down $1.32
at $84.77 and February lean hogs are down $1.27 at $86.85. Both cash prices and
pork cutout values are weaker at the midday reports, and it's likely that
remains the theme through the day's close.
The projected lean hog index for 10/8/2025 is down $0.62 at $100.08, and the
actual index for 10/7/2025 is down $0.72 at $100.70. Hog prices are unavailable
on the Daily Direct Morning Hog Report because of confidentiality. However, we
can see that only 1,430 head have traded this morning and that the market's
five-day rolling average now sits at $97.84. Pork cutouts total 167.80 loads
with 140.95 loads of pork cuts and 26.86 loads of trim. Pork cutout values:
down $1.71, $102.11.
ShayLe Stewart can be reached shayle.stewart@dtn.com
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