DTN Midday Livestock Comments 11/03 11:45

DTN Midday Livestock Comments 11/03 11:45 What Will Northern Feedlots Do? The South is trading some cattle at $150, which is steady with last week's market, but the North has yet to sell any cattle at this point. ShayLe Stewart DTN Livestock Analyst GENERAL COMMENTS: Thursday's market hasn't blessed the livestock complex with an easy road, especially for the cattle contracts as feeders lack support to trade higher while corn is lower and the live cattle complex saw a less than desirable export report Thursday morning. December corn is down 6 cents per bushel and December soybean meal is down $9.70. The Dow Jones Industrial Average is down 22.15 points. LIVE CATTLE: The live cattle complex hasn't been granted a free and easy road Thursday morning as the cash cattle market is only seeing mild interest in the Southern Plains and Thursday morning's export report was pitiful, at only 9,200 metric tons being sold. Nevertheless, the market is still patiently waiting to see how everything will pan out in this week's cash market. December live cattle are up $0.37 at $151.77, February live cattle are down $0.17 at $154.72 and April live cattle are down $0.15 at $158.35. There is some trade in the South being noted at $150, which is fully steady with last week's market. Before the industry's trend gets set on steady prices this week, we need to see what the North does. Northern feedlots are known for pushing the cash cattle market and could get higher prices. Asking prices for cattle in the South are $151 to $152 and in the North for $244 to $245. Beef net sales of 9,200 mt for 2022 were primarily for Japan (3,000 mt), South Korea (1,900 mt) and Taiwan (1,800 mt). Boxed beef prices are higher: choice up $1.51 ($264.98) and select up $0.53 ($233.69) with a movement of 60 loads (32.36 loads of choice, 12.11 loads of select, 6.81 loads of trim and 8.97 loads of ground beef). FEEDER CATTLE: One would think that, with corn trading $0.05 lower in its nearby contracts, feeder cattle would be trading higher, but with so much volatility looming in the marketplace, feeders are skeptical. November feeders are down $0.47 at $178.45, January feeders are down $0.45 at $179.55 and March feeders are down $0.12 at $181.80. The market continues to hover around its 40-day moving average, showing that traders are uncertain about the near future as well. If the cash cattle market can show some support through higher cash sales and influence the live cattle contracts to trade higher, then feeders may contemplate trading higher but it likely won't be done unless support from the live cattle arena seeps over into its market. LEAN HOGS: The nearby lean hog contracts are trading higher as the market is extremely appreciative that the day's export report was as supportive as it was. Not only did the industry see 47,900 metric tons sold, but China was the second most aggressive buyer -- two wins in the U.S. hog market's book, but that's not to say that all is well with the lean hog complex. As odd as it is, packers have yet to dive into this week's cash hog market and really show the complex support. Some of that could be because pork cutouts have been volatile, but it also could be because slaughter speeds have regressed early this week. Nevertheless, monitoring both slaughter speeds and pork prices Thursday afternoon remains a key concern. December lean hogs are up $0.15 at $83.45, February lean hogs are up $0.07 at $87.27 and April lean hogs are up $0.05 at $92.70. The projected lean hog index is delayed from the source. Hog prices are lower on the Daily Direct Morning Hog Report, down $1.28 with a weighted average of $85.90, ranging from $84.00 to $97.50 on Pork cutouts total 168.54 loads with 143.03 loads of pork cuts and 25.51 loads of trim. Pork cutout values: up $1.56, $97.79. Pork net sales of 47,900 mt for 2022 were primarily for Mexico (12,700 mt), China (11,200 mt) and Japan (9,300 mt). 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.