DTN Midday Livestock Comments 09/23 12:08
Hello Positive Monday Livestock Markets!
Monday morning opened to positive gains on all livestock fronts. Friday's
bullish Cattle on Feed report could be prompting the excitement in the cattle
complex, while then also being backed by higher cash prices! Last week's live
cattle prices jumped $1.85.
By ShayLe Stewart
DTN Livestock Analyst
Nearby and deferred contracts are all moving with the same vigor and
momentum! As the noon hour approaches, all contracts seem to be gaining more
and more positive support. December corn is up 2 3/4 cents per bushel. The Dow
Jones is up 32.36 points and the NASDAQ is up 10.40 points.
October live cattle opened Monday morning at $100.50 and have since then
scaled to $101.85. Friday's Cattle on Feed Report is surely fueling the energy
found Monday morning. Formula totals for last week were lower in all three
major feeding states: Kansas 74,785 (down 15,914), Nebraska 64,812 (down
4,460), Texas 88,812 (down 7,308). Total trade volume came in mixed, higher in
Nebraska, but lower in Kansas and Texas: Kansas 90,692 (down 7,840), Nebraska
97,045 (up 6,738), Texas 92,653(down 10,379). New show-lists appear to be
mixed, higher in Texas, but lower in Kansas and Nebraska/Colorado.
It's too early in the week for country bids to be surfacing but if Monday's
strength continues until closing, there's a greater chance that early bids will
have to rally last week's high.
Boxed beef cutouts at midday are down slightly, choice down $0.14 ($216.83)
and select down $0.10 ($191.62). Boxed beef movement totaled 52 loads (23.20
loads of choice cuts, 12.83 loads of select cuts, 9.32 loads of trimmings and
6.17 loads of ground beef).
As the September 2019 feeder cattle contract nears expiration, October and
November contracts see $1.50 to $2.00 gains! Friday's Cattle on Feed Report
treated feeder cattle especially well with placement numbers far below 2018
thresholds. It will be interesting to see the next Cattle on Feed Report
because with increased fat cattle prices and an incentive from a positive
future's board it's likely to see more feeder cattle move this month. October
feeder cattle are up $1.72 at $140.92 and November feeder cattle are up $2.30
Even though the U.S. and China were unable to completely resolve trade
tensions last week, the lean hog market welcomes a new week with plenty of
optimism. All contracts have positive gains except May 2020 and February 2021,
with the largest gain being seen in the December 2019 contract. December lean
hogs opened Monday morning at $67.10 and have since then surged to $68.40.
The projected lean hog index for 9/20/19 sit at $55.13, down $0.67 and the
actual lean hog index for 9/19/19 came back down $0.52 at $55.80. Pork cutout
loads came to 134.02, with 123.32 loads of pork cuts and 10.70 loads of
trimmings. Pork cutout values are up $1.11 at $70.26. Prices are down $0.56 on
the National Direct Morning Hog Report, at a weighted average of $43.70,
ranging from $40.00 to $45.00 on 4,015 head sold, with a five-day rolling
average of $44.63.
ShayLe Stewart can be reached at firstname.lastname@example.org
Copyright 2019 DTN/The Progressive Farmer. All rights reserved.
Your local weather forecast from DTN can be sent to your email every morning free through DTN Snapshot