DTN Midday Livestock Comments          10/04 11:45

   Higher Corn Puts a Kibosh to Hopes of Higher Trade for Feeders Tuesday

   The cash cattle market hasn't seen any interest develop from packers, but 
with boxed beef prices printing higher, feedlots are hopeful to get more money 
when it does come time to trade cattle.

ShayLe Stewart
DTN Livestock Analyst

GENERAL COMMENTS:

   As the livestock complex nears the noon hour, the corn market's mild gain 
has rocked the feeder cattle complex back on its heels. The lean hog complex is 
clinging to its market's strong fundamentals and hopes that stronger tones can 
again find their way into the contracts before closing time. December corn is 
up 4 cents per bushel and December soybean meal is down $2.20. The Dow Jones 
Industrial Average is up 815.46 points.

LIVE CATTLE:

   The nearby live cattle contracts are struggling, but the deferred contracts 
are still trading higher into Tuesday's afternoon as the market clings to its 
bullish fundamentals. October live cattle are down $0.07 at $144.25, December 
live cattle are down $0.57 at $147.45 and February live cattle are down $0.17 
at $151.37. With boxed beef prices closing higher Monday afternoon, and midday 
prices higher on Tuesday, could it be that the market's seen its seasonal low 
or will tough economic times drive prices lower in the weeks to come? 
Regardless, feedlots are pleased to see the heightened interest in beef prices 
as it means that packers will likely continue to run chain speeds aggressively 
and need to stay active in the cash market. The cash cattle market hasn't seen 
any interest at this point, though packers could grow more curious as the day 
goes on. Asking prices in the South are noted at $145 but are unknown in the 
North.

   Boxed beef prices are higher: choice up $2.88 ($248.82) and select up $0.15 
($221.46) with a movement of 52 loads (28.86 loads of choice, 10.17 loads of 
select, 3.12 loads of trim and 9.62 loads of ground beef).

FEEDER CATTLE:

   The feeder cattle market started the day out stronger but as the corn 
complex grows stronger too, it's now heading into Tuesday's afternoon lower. 
October feeders are down $0.72 at $174.80, November feeders are down $0.62 at 
$175.42 and January feeders are down $0.55 at $176.47. What's encouraging at 
this point, however, is that, even though the feeder cattle market is trading 
lower, it's not pressuring Monday's lower trading range.

LEAN HOGS:

   The lean hog complex was eager to start the day off stronger, but as the day 
has progressed, its market has grown hesitant and is now heading into Tuesday's 
afternoon fully lower. October lean hogs are down $1.15 at $87.62, December 
lean hogs are down $2.17 at $75.55 and February lean hogs are down $1.32 at 
$78.77. Even though the futures market may be retracting, the fundamental side 
of the market looks rather supportive as midday cash prices and early pork 
cutout values are higher. The $14.62 gain in bellies Monday afternoon helped 
pull pork cutout values higher, so, heading into Tuesday's afternoon, seeking 
the afternoon cutout data will be intriguing as everyone knows that bellies are 
every volatile.

   The projected lean hog index is delayed from the source. Hog prices are 
higher on the Daily Direct Morning Hog Report, up $3.14 with a weighted average 
of $85.81, ranging from $80.00 to $95.50 on 4,553 head and a five-day rolling 
average of $86.55. Pork cutouts total 196.98 loads with 173.83 loads of pork 
cuts and 23.15 loads of trim. Pork cutout values: up $0.05, $99.98.

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




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