DTN Midday Livestock Comments 11/13 12:13
Cattle Contracts Sharply Lower, Lean Hogs Somewhat Lower
Cattle contracts get laid away Wednesday morning while lean hog contracts
nearly skate by with only minimal losses.
By ShayLe Stewart
DTN Livestock Analyst
Feeder cattle markets sink lower and lower while the live cattle market toys
with the idea of how low its market should trade. Cash cattle markets have
traded early Wednesday morning for $1.00 higher, which is helping keep some
optimism in the live cattle future's contracts. December corn is down 1 3/4
cents per bushel and December soybean meal is up $2.00. The Dow Jones
Industrial Average is up 49.48 points and NASDAQ is up 6.79 points.
The live cattle market isn't bleeding as much as the feeder cattle market
though it's still lower than cash cattle enthusiasts would like to see.
December live cattle are down $2.00 at $117.75, February live cattle are down
$2.12 at $123.45 and April live cattle are down $2.00 at $125.05. With plenty
of time left in the day, the market could ease up in the afternoon and close
some higher than today's low.
The Fed Cattle Exchange Auction reported a total of 1,393 head today (one
lot in Texas, two lots in Kanas, and four lots in Nebraska) asking prices
ranged from $114 to $117. One lot in Texas was offered $115, but that offer was
passed. One lot in Kansas was offered $115.50 but that offer was also passed.
Not long after the Fed Cattle Exchange closed bidding there was some light
trade reported in parts of Texas at $115, which is steady to $1.00 higher than
last week's trade. Other feeders continue to hold out to $117 to $118 in the
South, and $185 to $188 in the North. Wednesday's future market tizzy could
push some feeders to panic and liquidate sooner than planned, but then again
with fat cattle supplies, current feeders may be able to walk through the
merely unharmed and still trade cattle for steady to higher prices. As the day
plays out, time will tell.
Midday boxed beef cutouts are higher: choice up $1.75 ($242.25) and select
is up $1.26 ($217.49) with a movement of 74 loads (34.59 loads of choice, 13.75
loads of select, 15.96 loads of trim and 9.36 loads of ground beef).
Lower and lower and lower falls the feeder cattle market in both nearby and
deferred contracts. There's nothing about Wednesday's trade that is subtle, but
rather instead a cold hard crash lower. November feeder cattle are down $2.57
at $145.22, January feeder cattle are down $4.42 at $142.70 and March feeders
are down $4.02 at $142.72. As the clock strikes the noon hour, things aren't
looking hopeful but with the entire rest of the afternoon left to sort out
trade, there may still be potential for the market to close somewhat higher.
Seeming to inch through the day with minimal losses compared to the other
livestock contracts, the lean hog complex trades lower but not near as much
lower and the cattle contracts. December lean hogs are down $1.00 at $63.72,
February lean hogs are down $1.12 at $74.40 and April lean hogs are down $0.37
The projected lean hog index for 11/11/19 is down $0.50 at $58.94, and the
actual lean hog index for 11/08/19 came in at $59.44 was down $0.85. Hog prices
are lower on the National Direct Morning Hog Report, down $0.02 with a weighted
average of $42.71, ranging from $41.50 to $43.09 on 4,415 hogs sold and a
five-day rolling average of $43.30. Pork cutouts totaled 156.65 loads with
130.70 loads of pork cuts and 25.95 loads of trim. Pork cutout values are down
$1.32 at $87.21.
ShayLe Stewart can be reached firstname.lastname@example.org
Copyright 2019 DTN/The Progressive Farmer. All rights reserved.
Get your local Cash Bids emailed to you each morning from DTN – click here
to sign up for DTN Snapshot.