DTN Midday Livestock Comments          04/22 11:46

   Cattle Rally Over Supportive Cattle on Feed Report 

   The entire livestock complex is trading higher midday Monday but the cattle 
complex is seeing the most interest as traders are encouraged by last Friday's 
Cattle on Feed report. 

ShayLe Stewart
DTN Livestock Analyst

GENERAL COMMENTS:

   The cattle complex is rallying in excitement over Friday's bullish Cattle on 
Feed (COF) report. Heading into Monday afternoon, it's important to monitor 
whether the spot June live cattle contract can close above the market's 100-day 
moving average. May corn is up 4 1/4 cents per bushel and July soybean meal is 
up $0.40. The Dow Jones Industrial Average is up 173.05 points.

LIVE CATTLE:

   The live cattle complex boldly ran higher by midday as the market rallies, 
thanks to last Friday's supportive COF report. June live cattle are up $1.92 at 
$177.60, August live cattle are up $2.62 at $176.17 and October live cattle are 
up $2.87 at $179.62. There are a couple of big takeaways so far from Monday's 
bullish push. First, it seems the nervousness and fear surrounding the avian 
influenza outbreak has run its course through the market and traders are ready 
to refocus on the market's long-term bullish fundamentals. Secondly, it's 
encouraging to see the spot June contract trading above its 100-day moving 
average. If the complex can indeed close above that threshold, that signals 
strength and bullishness throughout the market.

   Last week, Northern live cattle traded at $292 to $294 but mostly at $292,  
$1 lower than the previous week's weighted average. Southern live cattle traded 
at $180 to $183, but mostly at $182, steady with the previous week's weighted 
average. Last week's negotiated cash cattle trade totaled 67,898 head. Of that, 
83% (56,224 head) were committed to the nearby delivery and the remaining 17% 
(11,674 head) committed to the deferred delivery option.

   Boxed beef prices are higher: choice up $0.24 ($295.91) and select up $0.60 
($291.43) with a movement of 51 loads (28.87 loads of choice, 5.87 loads of 
select, zero loads of trim and 15.90 loads of ground beef).

FEEDER CATTLE:

   The feeder cattle complex is back to trading higher as the market thrives on 
the support gained by Friday's COF report. Even though midday corn prices are 
trading $0.04 to $0.05 higher, the market finds more credence in the market's 
new-found support and is confidently trading higher into Monday's noon hour.

   May feeder cattle are up $3.82 at $245.82, August feeder cattle are up $5.37 
at $258.87 and September feeders are up $5.05 at $259.47.

LEAN HOGS:

   The lean hog complex isn't trading with as much gusto as cattle contracts 
but even so, nearby contracts are still trading mildly higher. Helping the lean 
hog complex right now is the higher midday pork cutout values at the week's 
start. Packers have been running aggressive, processing speeds in the hog 
sector. To keep doing so, packers need to see consistent consumer demand. June 
lean hogs are up $0.62 at $105.45, July lean hogs are up $1.15 at $107.62 and 
August lean hogs are up $0.92 at $104.97.

    

   The projected lean hog index for April 19 is down $0.04 at $91.31 and the 
actual index for April 18 is down $0.11 at $9.35. Hog prices are unavailable on 
the Daily Direct Morning Hog Report due to confidentiality. However, we can see 
that 377 head have traded and the market's five-day rolling average sits at 
$88.87. Pork cutouts total 145.32 loads with 125.22 loads of pork cuts and 
20.10 loads of trim. Pork cutout values: up $1.56, $101.65.

   ShayLe Stewart can be reached at ShayLe.Stewart@dtn.com

    

    




(c) Copyright 2024 DTN, LLC. All rights reserved.