DTN Midday Livestock Comments 08/25 12:09

DTN Midday Livestock Comments 08/25 12:09 Modest Support Building in Weakened Cattle Complex Monday tumbled the cattle contracts lower but as Tuesday has inched further into the day's trade, modest support is building in both the live cattle and feeder cattle contracts. ShayLe Stewart DTN Livestock Analyst General Comments Taking a swing at higher prices, lean hog contracts are keeping with their momentum established earlier in the week, but the cattle contracts are fighting to muster the support needed to trade positively. Cash cattle trade is breaking out in the South for $105 to $106 while the Northern feedlots continue to sit back and wait the week out. December corn is up 8 3/4 cents per bushel and December soybean meal is up $2.30. The Dow Jones Industrial Average is down 154.01 points and NASDAQ is up 25.46 points. LIVE CATTLE Live cattle contracts are seeing the opportunity in the day and rallying near $1.00 stronger around the 2021 first-quarter contracts. Traders look at the marketplace and see less vulnerability in the 2021 market and following Monday's regression, see a chance to slowly build the complex higher. October live cattle are up $0.82 at $108.75, December live cattle are up $0.95 at $111.77 and February live cattle are up $0.85 at $114.30. The Southern Plains wasted no time breaking out the week's trade early Tuesday morning steady to $1.00 lower than last week's averages. Kansas has sold a modest run of live cattle for $105 to $106, and bids still are available at $104 to $106. Texas sold some cattle for $105 early Tuesday morning, but the remaining cattle in the Panhandle are priced at $107. As Southern feedlots let cattle go early in the week for steady to slightly lower prices, Northern feedlots will be lucky to get steady prices this week. Boxed beef prices are higher: choice up $1.74 ($229.21) and select up $2.07 ($213.32) with a movement of 45 loads (23.62 loads of choice, 7.93 loads of select, zero loads of trim and 13.28 loads of ground beef). FEEDER CATTLE Feeder cattle contracts are making a modest attempt at trading higher into the early afternoon hours after seeing some positive movement in the live cattle sector. September feeders are up $0.50 at $143.35, October feeders are up $0.62 at $143.37 and November feeders are up $0.52 at $144.20. Corn prices are also rallying into the afternoon, which could defer the feeder cattle market from rallying robustly as feedlots have to manage both price spectrums. LEAN HOGS Following Monday's support for a stronger lean hog complex, lean hog contracts are continuing to creep higher. October lean hogs are up $0.95 at $55.55, December lean hogs are up $0.72 at $56.32 and February lean hogs are up $0.57 at $62.45. Tuesday's cash hog trade was as strong as Monday afternoon's report, but with a midday cutout value upwards of $3.00 stronger -- producers are hoping that packers will keep pushing vigorously. The projected lean hog index for 8/21/2020 is up $0.55 at $56.06 and the actual index for 8/20/2020 is up $0.10 at $55.51. Hog prices are lower on the National Direct Morning Hog Report, down $0.40 with a weighted average of $40.95, ranging from $36.00 to $44.00 on 3,960 head and a five-day rolling average of $38.99. Pork cutouts total 277.56 loads with 257.96 loads of pork cuts and 19.61 loads of trim. Pork cutout values: up $3.06, $77.63. ShayLe Stewart can be reached [email protected] (c) Copyright 2020 DTN, LLC. All rights reserved.