DTN Midday Livestock Comments 11/13 12:09 Livestock Contracts Tipping Lower It's been a prosperous week for the cattle contracts but after having such lofty gains earlier this week, the market's ambition seems to have run dry come Friday. ShayLe Stewart DTN Livestock Analyst General Comments The live cattle contracts are trailing lower heading into the weekend but following the exciting trade that developed throughout the cattle contracts earlier in the week, it's not surprising to see Friday's sellout. The cash cattle market is trading lightly with some action developing in Nebraska early Friday morning, but the rest of the market has yet to jump into Friday's business. December corn is up 3 1/4 cents per bushel and December soybean meal is up $1.00. The Dow Jones Industrial Average is up 272.78 points and NASDAQ is up 69.37 points. LIVE CATTLE As Friday nears closer and closer to the afternoon hours, the market is coming up against stronger incentives to trade lower. December live cattle are down $1.60 at $110.40, February live cattle are down $1.92 at $112.87 and April live cattle are down $1.67 at $116.67. Meanwhile Friday's cash cattle market is holding tight following Thursday's dynamic trade. There have been a few live deals reported in Nebraska at $110 but the rest of the market has yet to budget. Asking prices are around $112 to $114 in the South and $175-plus in the North. Thursday moved the market significantly higher as Northern cattle mostly sold for $172 ($7.00 higher than a week ago) and a few pens even sold for $174. There wasn't as much action in the South, but some cattle did sell for $110 to $111 which was $3.00 to $4.00 higher than last week's market. Packers need cattle so before this week's business is wrapped up, cash cattle trade should see some more action. Friday's export report shared that beef net sales of 14,300 mt reported for 2020 were down 30% from the previous week and 23% from the prior four-week average. Increases primarily for China (3,500 mt), Japan (3,100 mt, including decreases of 300 mt) and Canada (1,900 MT). Boxed beef prices are mixed: choice down $0.06 ($226.44) and select prices up $1.57 ($209.81) with a movement of 114 loads (81.57 loads of choice, 6.10 loads of select, 22.44 loads of trim and 3.42 loads of ground beef). FEEDER CATTLE Feeder cattle contracts are trading in a disappointing fashion through Friday's trade but given the massive support the market found earlier this week the lack of interest late in the week isn't surprising. November feeders are down $1.05 at $139.02, January feeders are down $1.67 at $139.05 and March feeders are down $1.45 at $138.25. The corn market is seeing a modest $0.02 to $0.03 rally but really the market's regression is stemming from a lack of trader interest. Feeder cattle are continuing to sell with strong demand throughout the countryside as hay prices are stabilizing and wheat pasture is becoming available. LEAN HOGS The lean hog market is continuing to trade through Friday with the same lackadaisical, unsupported demeanor that that markets had all throughout the week. December lean hog are down $1.35 at $64.45, February lean hogs are down $1.87 at $64.87 and April lean hogs are down $1.85 at $68.50. Even though the week has been pushed to trade lower, which adds some bearish psychological weight to the market, the market has only slightly corrected its position from recent resistance levels, which is easier to stomach than drastic movements. The projected lean hog index for 11/12/2020 is down $0.48 at $70.84 and the actual index for 11/11/2020 is down $0.05 at $71.32. Hog prices are higher on the National Direct Morning Hog Report, up $0.33 with a weighted average of $60.25, ranging from $55.00 to $62.33 on 4,360 head and a five-day rolling average of $60.55. Pork cutouts total 193.72 loads with 169.88 loads of pork cuts and 23.83 loads of trim. Pork cutout values: down $2.47, $80.61. Pork net sales of 42,500 mt reported for 2020 were up 1% from the previous week and 36% from the prior four-week average. Increases were primarily for China (21,100 mt, including decreases of 800 mt), Mexico (9,900 mt, including decreases of 800 mt) and Japan (6,600 mt, including decreases of 100 mt). ShayLe Stewart can be reached
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