Headline News

DTN Midday Livestock Comments          09/21 12:01

   Traders Positioning Ahead of Report

   The cattle complex is showing some strength with traders positioning 
themselves ahead of the Cattle on Feed report to be released this afternoon. 

By Robin Schmahl
DTN Analyst

GENERAL COMMENTS: 

   The cattle complex is showing some strength with traders positioning 
themselves ahead of the Cattle on Feed report to be released this afternoon. 
Trade estimates are for on-feed at 105.5%, placements at 104.8% and marketings 
at 100.0%. The trading range so far for live cattle futures has shown a lower 
low and lower high for the October contract and sideways for other contracts. 
Corn futures continue to extend gains with December up 2 cents. The Dow is 94 
points higher with the Nasdaq down 4 points.

   LIVE CATTLE:

   Futures are showing minor gains as traders position themselves for the 
Cattle on Feed report to be released this afternoon. The July report showed 
above-average placements and this is expected again for August. Placements are 
expected to be the largest since 2012. Cash cattle are negotiated at $175 on a 
dressed basis with live cattle live cattle bids remaining at $108 and offers 
$111.50 with limited business reported. Boxed beef cut-outs are mixed at 
midday, $0.46 higher (choice) and down $0.20 (select). Total volume reported is 
52 loads (25 loads of choice cuts, 11 loads of select cuts, 6 loads of 
trimmings, and 10 loads of ground beef).

   FEEDER CATTLE:

   Feeder cattle futures are holding their own, trying to keep their head above 
water. Upside movement will be limited as feeder futures keep pace with live 
futures. Feeder steers have been lightly tested this week, but show a better 
undertone. The supply of feeders this week consist of 26% steers and 74% 
heifers. Steer prices range for $154.50-$165 with heifers ranging from 
$146.80-$150.       

   LEAN HOGS:

   Although making new highs for the move Thursday, futures are struggling 
Friday. December and February are taking the brunt of selling with sliding 
carcass values. Front-month October, although lower, continues to hold gains 
well. Cash prices are lower on the National Direct morning cash report. The 
weighted average price is $0.49 lower at $57.88 per cwt with a range of $56 to 
$59. The National Pork midday report showed 156 loads selling. Carcass valued 
declined $0.62 per cwt at $77.58. Lean hog index for 9/19 is $57.44, up $1.45, 
with the projected two-day index at $59.09, up $1.65.

   Robin Schmahl can be reached at: rschmahl@agdairy.com


(SK)

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