DTN Midday Livestock Comments 10/24 11:45

DTN Midday Livestock Comments 10/24 11:45 Cattle Charge on Higher Now that the cattle contracts have been given some time to absorb and digest last Friday's Cattle on Feed report, the cattle contracts are trading fully higher. ShayLe Stewart DTN Livestock Analyst GENERAL COMMENTS: The live cattle and feeder cattle contracts are rallying into Monday afternoon as traders continue to support the market, thanks to strong fundamentals and Friday's bullish Cattle on Feed report. Meanwhile, the lean hog complex is trading gingerly as traders need to see follow-through support if they're to move the complex any higher. December corn is down 1/4 cent per bushel and December soybean meal is down $7.10. The Dow Jones Industrial Average is up 384.39 points. LIVE CATTLE: The live cattle complex is sporting a tremendous start to the week as cattlemen and traders alike are still absorbing last Friday's supportive Cattle on Feed report, and feedlots are once again gunning for higher prices in this week's cash market. December live cattle are up $1.57 at $154.00, February live cattle are up $1.15 at $156.67 and April live cattle are up $0.85 at $159.10. The December contract carved out a new contract high last Friday and, as the market continues to run aggressive through Monday, the momentum is pushing the complex higher yet. If boxed beef demand and throughput continue as they did last week, the market should be able to sustain this higher tone. Last week's negotiated cash cattle trade totaled 102,849 head. Of that 82% (84,745 head) were committed for the nearby delivery, 18% (18,104 head) were committed for the deferred delivery. Boxed beef prices are higher: choice up $3.69 ($257.40) and select up $3.52 ($227.88) with a movement of 41 loads (15.77 loads of choice, 8.91 loads of select, 5.45 loads of trim and 10.83 loads of ground beef). FEEDER CATTLE: With the corn complex trending mildly lower, the feeder cattle complex is off to a strong start in Monday's market. The complex is thankful for the slight dip in corn prices, but, more than anything, the feeder cattle market is still absorbing Friday's bullish Cattle on Feed report. The slight dip in placements is relieving to the market as for months higher placements have been noted as drought related stressors have forced cattle into feedlots sooner than normal. November feeders are up $0.75 at $179.10, January feeders are up $1.55 at $181.92 and March feeders are up $1.62 at $183.87. LEAN HOGS: The lean hog complex is trading mixed into Monday's afternoon, as the market is unsure if it can trade higher. If the day's afternoon reports show strong sales to consumers and close with higher pork cutouts, then traders may be more apt to trading higher in Tuesday's market. December lean hogs are down $0.85 at $88.27, February lean hogs are down $0.02 at $90.50 and April lean hogs are up $0.05 at $93.90. The projected lean hog index Oct. 21 is up $0.62 at $94.67, and the actual index for Oct. 20 is up $0.29 at $94.05. Hog prices on the Daily Direct Morning Hog Report average $85.88, ranging from $85.00 to $94.00 on 3,025 head and a five-day rolling average of $91.71. Pork cutouts total 180.30 loads with 148.55 loads of pork cuts and 31.75 loads of trim. Pork cutout values: up $0.72, $101.66. ShayLe Stewart can be reached [email protected] ** Cattlemen are eager for supply and demand mechanics to swing their way, but the market isn't completely free of hurdles as bearish concerns about the U.S. and global economies loom. Hear DTN Livestock Analyst ShayLe Stewart's thoughts on the 2023 cattle market at the all-virtual DTN Ag Summit on Dec. 12-13. Full details available at http://www.dtn.com/agsummit (c) Copyright 2022 DTN, LLC. All rights reserved.