DTN Midday Livestock Comments          07/13 12:20

   Livestock Contracts Still Trying to Wade Through Week -- Determining 
Direction

   Livestock contracts struggle to find a sheer direction through Monday's 
early trade. The feeder cattle contract is strongly optimistic while the live 
cattle and lean hog complexes aren't as bullish.

ShayLe Stewart
DTN Livestock Analyst

   General Comments

   Heading into Monday's afternoon trade, the livestock complex is torn on 
whether higher prices should be sought, or if the complex should simply trade 
cautiously. The live cattle and lean hog complex are trading mixed, but the 
feeder cattle contracts are vigorously trading higher. Corn's lower trend and 
exciting feeder cattle acquisition make for an encouraged board. December corn 
is down 7 1/2 cents per bushel and December soybean meal is down $7.40. The Dow 
Jones Industrial Average is up 419.74 points and NASDAQ is up 182.76 points.

   LIVE CATTLE

   Live cattle contracts are mixed as nearby contracts are trading mildly 
lower, and deferred contracts are trading higher. October live cattle are down 
$0.37 at $104.20, December live cattle are down $0.02 at $108.37 and February 
live cattle are up $0.07 at $111.80. Cash cattle trade was exceptional last 
week as price jumped $4.00 to $5.00 higher for dressed cattle, and $2.00 to 
$3.00 higher for live cattle. Bids and asking prices have yet to be established 
for the entire feeding region, but Nebraska has priced dressed cattle at $162 
or higher, and live cattle at $101 or higher. The rest of the countryside is 
expected to price cattle higher as well as last week aided a stronger cash 
cattle trade.

   The USDA's National Weekly Direct Slaughter Cattle -- Negotiated Sales 
shared that last week packers bought 119,962 head. Of that, 106,208 head are 
committed for delivery in the next two weeks, and the remaining 13,754 head 
will be delivered in the following 15 to 30 days.

   Boxed beef prices are lower: choice down $0.44 ($204.06) and select down 
$1.86 ($192.43) with a movement of 73 loads (35.72 loads of choice, 23.13 loads 
of select, 5.51 loads of trim and 8.44 loads of ground beef).

   FEEDER CATTLE

   Hi-ho up feeder cattle contracts go. Last week feeder cattle sales fared 
phenomenally well as buyers keep lining up to buy feeder cattle despite the 
uncertainty in the fat cattle world. Putting a simple twist on a complex 
situation, it seems as though cattlemen are gut-full of bad news and are simply 
ready to have a lively and fruitful market again. August feeders are up $1.35 
at $137.12, September feeders are up $0.80 at $138.12 and October feeders are 
up $1.15 at $139.65.

   LEAN HOGS

   Lean hog contracts are fighting some resistance in deferred contracts while 
nearby contracts trade higher. August lean hogs are up $0.82 at $50.70, October 
lean hogs are up $0.42 at $50.27 and December lean hogs are down $0.02 at 
$51.75. Hog slaughter has been extremely aggressive in the last couple of weeks 
and if the industry can keep processing hogs at the speed they have been, 
achieving current-ness isn't as far fetched as thought.

   The projected lean hog index for 7/9/2020 is up $0.15 at $45.33, and the 
actual index for 7/8/2020 is down $0.17 at $45.18. Hog prices are lower on the 
National Direct Morning Hog Report, down $0.48 with a weighted average of 
$29.52, ranging from $26.00 to $29.97 on 5,422 head and a five-day rolling 
average of $29.37. Pork cutouts total 132.17 loads with 116.94 loads of pork 
cuts and 15.22 loads of trim. Pork cutout values: up $3.40, $72.35.

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




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