DTN Midday Livestock Comments          11/26 11:48

   Feeders Continue to Push Higher, While Live Cattle Retreat

   Still no cash cattle trade has developed, but asking prices are now noted in 
the South at $189.

ShayLe Stewart
DTN Livestock Analyst

GENERAL COMMENTS:

   The livestock complex is trading mixed into Tuesday's noon hour as the live 
cattle contracts are trading mostly lower but the lean hog and feeder cattle 
contracts continue to grind higher. Asking prices are noted in the South at 
$189 but are still not established in the North. December corn is down 5 cents 
per bushel and January soybean meal is down $4.40. The Dow Jones Industrial 
Average is down 104.17 points.

LIVE CATTLE:

   The live cattle complex is trading mostly lower as the market is on edge, 
waiting to see what develops in this week's cash cattle market. Still no cash 
cattle trade has developed, but asking prices are noted in the South at $189 
but are still not established in the North. Given that feedlot managers' pens 
are current and that they were able to trade cattle higher last week, it's 
likely that will want to see prices trade higher again this week. With that 
being said, it wouldn't be surprising to see trade delayed until Friday. 
December live cattle are up $0.02 at $186.52, February live cattle are down 
$0.50 at $187.20 and April live cattle are down $0.32 at $189.32.

   Boxed beef prices are higher: choice up $3.85 ($313.56) and select up $4.37 
($278.11) with a movement of 70 loads (48.63 loads of choice, 10.02 loads of 
select, zero loads of trim and 11.53 loads of ground beef).

FEEDER CATTLE:

   The feeder cattle complex is continuing to trade higher as everyone from 
cattlemen to traders is ecstatic to see what feeder cattle prices are going to 
do amid this time in which Mexican cattle imports are going to be restricted. 
January feeders are up $2.17 at $257.65, March feeders are up $1.87 at $256.20 
and April feeders are up $1.75 at $257.27. The market has recovered all of the 
position lost early in August from the commodity market meltdown and is 
currently showing no sign of easing up as the market upside potential amid 
tremendous buyer demand and limited feeder cattle supplies is unmeasurable.

LEAN HOGS:

   Even though midday pork cutout values are lower, the lean hog complex is 
continuing to charge onward and higher as technical support is ample. December 
lean hogs are up $0.92 at $82.90, February lean hogs are up $1.40 at $87.32 and 
April lean hogs are up $0.80 at $90.92. The market is currently trading beyond 
resistance thresholds and unless fundamental support (especially in the form of 
stronger pork cutout values) becomes stronger, traders may grow skeptical about 
advancing the contracts any higher.

   The projected lean hog index is delayed from the source. Hog prices on the 
Daily Direct Morning Hog Report average $87.69, ranging from $77.00 to $88.00 
on 3,165 head and a five-day rolling average of $86.09. Pork cutouts total 
199.80 loads with 181.26 loads of pork cuts and 18.54 loads of trim. Pork 
cutout values: down $1.54, $91.79.

   **

   As a new administration prepares to take office, farmers are preparing for 
the next growing season. In this year's DTN Ag Summit, we'll examine the state 
of national farm policy, including timing on a farm bill, makeup of the ag 
committees and new leadership at USDA. A few of the winners of this year's 
America's Best Farmers and Ranchers award share what they've learned from 
selling directly to consumers, and the DTN markets and weather team will offer 
their perspective on what's in store for 2025.

   The DTN Ag Summit is scheduled for Dec. 5-6, 2024. Use this link to sign up: 
https://dtn.link/DTNAgSummit2024

   ShayLe Stewart can be reached shayle.stewart@dtn.com

    




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