DTN Midday Livestock Comments 09/10 15:51

DTN Midday Livestock Comments 09/10 15:51 Livestock Contracts Unanimously Head Higher Into Thursday Afternoon The lean hog market has jumped limit higher at the potential of stronger export demand as a case of ASF comes from Germany to South Korea. ShayLe Stewart DTN Livestock Analyst General Comments It's been a back-and-forth week for the cattle complex as trade was higher Tuesday, lower Wednesday and is higher again Thursday. Boxed beef movement has been aggressive over the last two days, but cash cattle prices continue to trade lower when compared to a week ago. The support for the lean hog sector is only growing as export opportunities could grow with a new African swine fever case being detected from Germany. December corn is up 4 3/4 cents per bushel and December soybean meal is up $0.10. The Dow Jones Industrial Average is down 64.58 points and NASDAQ is up 14.70 points. LIVE CATTLE It's been a topsy-turvy week for the cattle complex as trade has danced on both sides of steady and there's yet to be unanimous consensus on which way the market should strategically head. But coming out of three-day weekend into a shortened week, there's going to be some volatility given that the week is short and business has to be conducted in a swift manner. October live cattle are up $0.47 at $105.20, December live cattle are up $0.40 at $109.55 and February live cattle are up $0.60 at $114.02. Cash cattle trade is keeping with its lower tone as on Thursday morning a few more cattle have traded at Wednesday's prices. A light sampling sold in Colorado for $101, and bids of $101 are on the table in Texas, Kansas and Iowa. Dressed cattle in Iowa are also being bid at $162. Boxed beef prices are lower: choice down $2.62 ($220.33) and select down $0.04 ($207.47) with a movement of 114 loads (60.75 loads of choice, 24.54 loads of select, 9.96 loads of trim and 18.66 loads of ground beef). FEEDER CATTLE Feeder cattle contracts are trading on the upper end of Wednesday's trade, scaling mostly $1.00 to $1.50 higher into the afternoon. September feeders are up $0.57 at $138.97, October feeders are up $1.20 at $139.45 and November feeders are up $1.32 at $140.25. As the cattle complex flips back and forth throughout the week dabbling in both higher and lower trade, volatility is high through the complex as there's not a sound understanding of where the market's trade should head. There are far more bearish reasons why the market should trade lower as opposed to higher, but choppy side-ways trade is summing up this week's direction. LEAN HOGS Blasting to limit highs in nearby contracts, the lean hog market is keeping with its sharply higher trade. October lean hogs are up $3.00 at $64.37, December lean hogs are up $3.00 at $62.85 and February lean hogs are up $3.00 at $67.40. The lean hog sector has been higher all week but Thursday's announcement that South Korea will not be accepting any imports from Germany at this time after finding a positive case of Africa swine fever, shoots optimism into the U.S. hog market as there could be an opportunity for greater exports. The projected lean hog index for 9/9/2020 is up $0.52 at $62.44 and the actual index for 9/8/2020 is up $1.39 at $61.92. Hog prices are lower on the National Direct Morning Hog Report, down $0.22 with a weighted average of $48.65, ranging from 42.00 to $52.00 on 4,787 head and a five-day rolling average of $46.47. Pork cutouts total 174.86 loads with 156.52 loads of pork cuts and 18.34 loads of trim. Pork cutout values: up $1.17, $81.30. ShayLe Stewart can be reached [email protected] (c) Copyright 2020 DTN, LLC. All rights reserved.