DTN Midday Livestock Comments          11/21 11:44

   Cattle Quickly Recover, Trade Higher at Midday Friday

   Later this afternoon the monthly Cattle on Feed report will be released, 
which will be a big-ticket item for the market. 

ShayLe Stewart
DTN Livestock Analyst

GENERAL COMMENTS:

   The livestock complex is trading mixed into midday Friday, as cattle are 
trading slightly higher, but the hog contracts continue to drift lower. No new 
cash cattle trade has developed, but some more clean-up trade could surface 
after the afternoon's Cattle on Feed report is released. December corn is down 
1 cent per bushel and January soybean meal is up $0.80. The Dow Jones 
Industrial Average is up 696.77 points and the NASDAQ is up 252.57 points.

LIVE CATTLE:

   After trading sharply lower as traders at first reacted poorly to the news 
that broke late Thursday afternoon that President Trump has lifted the tariff 
on Brazilian beef, as odd as it may sound, the market is back to trading higher 
into Friday's noon hour. December live cattle are up $0.77 at $215.50, February 
live cattle are up $0.55 at $215.95 and April live cattle are up $0.75 at 
$216.32. Besides the slightly higher boxed beef prices this morning, it's tough 
to pinpoint exactly what's giving traders enough support to look beyond 
Thursday's trade development. Nevertheless, for the sake of cattle producers, 
higher trade is higher trade, and that's always a win. No new cash cattle trade 
has developed. Do remember that later this afternoon the monthly Cattle on Feed 
report will be released. 

   So far this week, Northern dressed deals have been marked at mostly $345, $6 
lower than the prior week's weighted average basis Nebraska, while Southern 
live deals have been done at $222 to $224, $4 to $6 lower than the previous 
week's weighted averages.

   Boxed beef prices are higher: choice up $0.33 ($371.61) and select up $4.24 
($358.42) with a movement of 105 loads (76.51 loads of choice, 11.64 loads of 
select, 9.07 loads of trim and 8.00 loads of ground beef).

FEEDER CATTLE:

   The feeder cattle complex is taking more of a cautious approach to Friday's 
trade, as some of its contracts are trading higher, but the nearby contracts 
are still trading lower. The feeder cattle complex remains on edge as everyone 
in the industry knows that eventually the border is going to reopen, which will 
ripple a negative effect throughout the futures complex, and later this 
afternoon the monthly Cattle on Feed report is set to be released. January 
feeders are down $1.32 at $315.22, March feeders are down $0.32 at $308.22 and 
April feeders are up $0.02 at $306.57.

LEAN HOGS:

   The lean hog complex is trading fully lower into midday Friday, as the 
market, once again, comes up empty-handed in terms of enough fundamental 
support. December lean hogs are down $1.32 at $78.15, February lean hogs are 
down $1.32 at $78.32 and April lean hogs are down $1.77 at $81.85. And while 
yes, pork cutout values may be higher this morning, traders need to see more 
than one day's worth of higher trade to keep the contracts trading higher.

   The projected lean hog index is delayed from the source. Hog prices are down 
$1.93 on the Daily Direct Morning Hog Report, with a weighted average price of 
$70.31, ranging from $69.00 to $73.00 on 844 head and a five-day rolling 
average of $74.35. Pork cutouts total 254.15 loads with 225.29 loads of pork 
cuts and 28.86 loads of trim. Pork cutout values: up $2.59, $92.80.

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




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