DTN Midday Livestock Comments 12/04 12:11
Support Continues to be Hard to Come by for the Lean Hog and Live Cattle
So far Friday's trade has been mostly uneventful with limited support
surfacing and the only livestock contract trading higher being the feeder
DTN Livestock Analyst
As the day gets closer and closer to the noon hour, the feeder cattle
contracts are starting to see some support develop, but the lean hog contracts
and live cattle contracts unfortunately cannot say the same. The cash cattle
market has been pretty quiet with just some light clean up trade happening in
the South. March corn is down 3 1/2 cents per bushel and January soybean meal
is down $3.20. The Dow Jones Industrial Average is up 186.46 points and NASDAQ
is up 75.70 points.
The live cattle contracts have flirted on and off with the idea of trading
higher but right before the noon hour, the market is still trading modestly
lower. December live cattle are down $0.67 at $108.92, February live cattle are
down $0.57 at $112.00 and April live cattle are down $0.27 at $116.02. If boxed
beef prices could have held strong through the end of the week, the cash cattle
market might have had a chance of trading higher but with boxed beef prices
scaling lower the cash market hasn't been too lively through Friday's trade.
There was another light round of live cattle trade Friday morning in Texas for
$110, but otherwise the market has been mostly quiet.
Boxed beef prices are lower: choice down $1.37 ($239.52) and select down
$1.28 ($221.67) with a movement of 99 loads (60.92 loads of choice, 9.35 loads
of select, 15.69 loads of trim and 12.85 loads of ground beef).
Feeder cattle contracts are seeing some modest support develop in the
marketplace which could also be somewhat fueled the morning's lower trending
corn prices. January feeders are down $0.07 at $139.72, March feeders are down
$0.10 at $139.42 and April feeders are down $0.20 at $140.90. It's unlikely
that the market will shoot high enough to rally the short-term resistance plant
of $141.00, but a mixed close isn't out of the question for Friday's afternoon
It's looking like the lean hog market is going to round out the week on a
lower note as the market still neglects to find substantial support. December
lean hogs are down $0.27 at $65.75, February lean hogs are down $0.85 at $66.07
and April lean hogs are down $0.52 at $69.92. Even though the market is
trending lower into Friday's afternoon trade, given that the market was able to
trade higher earlier in the week Friday's close isn't looking like its going to
move far below the week's prior sideways trend.
The projected lean hog index for 12/2/2020 is down $0.16 at $66.55, and the
actual index for 12/1/2020 is up $0.04 at $66.71. Hog prices are lower on the
National Direct Morning Hog Report, down $0.11 with a weighted averaged $56.16,
ranging from $52.00 to $58.50 on 6,263 head and a five-day rolling average of
$56.32. Pork cutouts total 228.84 loads with 199.90 loads of pork cuts and
28.94 loads of trim. Pork cutout values: up $3.49, $79.94.
ShayLe Stewart can be reached firstname.lastname@example.org
Editor's Note: See DTN Livestock Analyst ShayLe Stewart's complete 2021
market outlook live by attending the DTN Ag Summit, Dec. 7-9. This year's event
is virtual, and as a DTN subscriber you can attend for FREE. Our premier farmer
and rancher event features markets updates from ShayLe, DTN Lead Analyst Todd
Hultman and a weather outlook by Senior Ag Meteorologist Bryce Anderson. Other
speakers include: U.S. Ambassador Kip Tom; Ken Eriksen and Paul Hughes of IHS
Markit; Microsoft Chief Scientist Ranveer Chandra; personal development
speakers David Horsager and Jon Gordon; farmers Reid and Heather Thompson; farm
blogger Meredith Bernard, and many more.
You can take part, and ask live questions, all from the comfort of your
home, shop or tractor cab. Register at
00&sdata=GNA2Ki89YXFtCVRYBszt7rkt9kURe5CGBuNLsNeKGrs%3D&reserved=0 and enter
code DTNVIP20 to get free access (a $99 value).
(c) Copyright 2020 DTN, LLC. All rights reserved.
Get your local Cash Bids emailed to you each morning from DTN – click here
to sign up for DTN Snapshot.