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DTN Midday Livestock Comments          11/12 12:04

   Tuesdays: Good for Hog Market, Depressing for Cattle Contracts

   Tuesday strikes again with its usual nature of depressing cattle contracts 
and supporting the hog market. 

By ShayLe Stewart
DTN Livestock Analyst

General Comments

   Tuesday has arrived with vigor and spunk for the lean hog contracts and 
could care less about what cattle contracts decide to do. As the day ticks on 
the gains seen in the lean hog sector just keep growing. December corn is up 3 
1/2 cents per bushel and December soybean meal is up $1.60. The Dow Jones 
Industrial Average is up 21.04 points and NASDAQ is up 31.15 points.

   LIVE CATTLE 

   Live cattle markets don't have near the excitement that hog contracts do as 
Tuesday continues to bear its gloomy nature on cattle contracts. Live cattle 
contracts are trading lower -- though none of the contracts are trading more 
than 50 cents lower. December live cattle are down $0.37 at $119.50, February 
live cattle are down $0.42 at $125.22 and April live cattle are down $0.20 at 
$126.75. Given that the whole second half of the day is still left to trade, a 
lot could happen, but it wouldn't be unlikely to see contracts stay at these 
prices through closing.

   Tyson announced Tuesday morning that their Holcomb, Kansas, plant should be 
up and running in the next 60 days. The company's quarterly earnings of $369 
million are down from $537 million which was last year's earnings for this time.

   For Wednesday's Fed Cattle Exchange there are 1,393 head of cattle consigned 
to the sale with one pen from Texas, two pens from Kansas and four pens from 
Nebraska. Cash cattle have yet to trade this week though there are a few bids 
popping up in Nebraska at $181 for dressed cattle. Asking prices are around 
$118 plus in the South and $185 to $188 in the North. 

   Midday boxed beef prices are up: choice up $1.46 ($240.05) and select is up 
$3.12 at $216.81 with a movement of 55 loads (24.34 loads of choice, 11.06 
loads of select, 5.07 loads of trim and 14.40 loads of ground beef). 

   FEEDER CATTLE 

   Feeder cattle markets are mostly lower though in the later part of the 
deferred contracts there is some optimism. November feeder cattle are trading 
$0.02 lower at $147.55, January feeder cattle are trading $0.35 lower at 
$146.77 and March feeders are trading $0.27 lower at $146.42. Currently trading 
just two cents lower than Monday's close, it would be considered a success if 
the feeder cattle market can at least close steady with Monday's finishing 
mark. 

   LEAN HOGS 

   Rock-n-rollin' on Tuesday morning lean hog contracts are rallying 
significantly on nearby contracts. December lean hogs are up $1.95 at $65.27, 
February lean hogs are up $1.75 at $75.50 and April lean hogs are up $1.12 at 
$81.77. The December contract is trading almost a $1.00 over the 40-day moving 
average of $64.43. Gains in the hams and bellies of pork products helped spark 
interest in the cutout values, though the prices aren't probably around to stay 
as more consumers look towards turkeys in the next couple of weeks. 

   The projected lean hog index for 11/11/19 is down $0.50 at $58.94, and the 
actual index for 11/08/19 came in at $59.44, $0.85 lower. Hog prices are lower 
on the National Direct Morning Hog Report, down $0.12 with a weighted average 
of $42.47, ranging from $40.00 to $43.09 on 6,525 head and a five-day rolling 
average of $44.08. Pork cutout totaled 189.09 loads with 170.95 loads of pork 
cuts and 18.14 loads of trim. Pork cutout values are up $2.73 at $89.07. 

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


(AG)

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