DTN Midday Livestock Comments          11/19 11:53

   Without Enough Fundamental Support, Cattle Contracts Fall Lower at Midday 
Wednesday

   Some light cash cattle trade is developing in the North at $345, which is 
$6.00 lower than last week's weighted average.

ShayLe Stewart
DTN Livestock Analyst

GENERAL COMMENTS:

   The cattle contracts are trading lower into Wednesday's noon hour as the 
market is disgruntled with the lack of fundamental support. Some light trade 
has developed in the North, where dressed cattle are trading at $345, which is 
$6.00 lower than last week's weighted average. December corn is down 6 1/2 
cents per bushel and December soybean meal is down $6.90. The Dow Jones 
Industrial Average is down 158.50 points and the NASDAQ is down 43.11 points.

LIVE CATTLE:

   Without a steadfast stamp of approval from the market's fundamentals, the 
live cattle contracts are back to trading lower. The market would anticipate 
that beef demand will begin a sharp fourth-quarter rally in the next week or 
two, as consumers secure their meat for the Christmas holiday. Still, with beef 
prices already high compared to years past, the market sits in an unknown 
position, unsure how much of a fourth-quarter rally is really going to play 
out. December live cattle are down $5.27 at $214.75, February live cattle are 
down $4.95 at $215.90 and April live cattle are down $4.47 at $216.85. And 
making matters even worse is the fact that some light cash cattle trade has 
begun to develop. Some light dressed cattle trade has developed in the North at 
$345, which is $6.00 lower than last week's weighted average. No trade has 
developed in the South yet, but bids are currently on the table at $224, and 
asking prices are firm at $230.

   Boxed beef prices are mixed: choice up $0.31 ($372.26) and select down $1.89 
($353.06) with a movement of 116 loads (81.70 loads of choice, 23.15 loads of 
select, 4.79 loads of trim and 6.66 loads of ground beef).

FEEDER CATTLE:

   The feeder cattle complex is also trading sharply lower as the market 
continues to closely follow the direction of the live cattle contracts. January 
feeders are down $5.95 at $320.30, March feeders are down $6.17 at $312.22 and 
April feeders are down $6.22 at $309.52. And until something changes the 
direction of the live cattle complex, the feeder cattle market will likely 
trade lower.

LEAN HOGS:

   Although midday pork cutout values are lower, once again, the lean hog 
contracts are trading slightly higher into Wednesday's noon hour as the market 
has seemed to stumble into some technical support. December lean hogs are up 
$0.87 at $78.77, February lean hogs are up $1.20 at $79.22 and April lean hogs 
are up $1.62 at $83.25. It will be interesting to see if the market is able to 
maintain this momentum through the day's close, as neither cash prices nor pork 
cutout values are higher, which makes this move solely a technical push.

   The projected lean hog index is delayed from the source. Hog prices are 
unavailable on the Daily Direct Morning Hog Report because of confidentiality. 
However, we can see that only a measly 88 head have traded this morning and 
that the market's five-day rolling average now sits at $76.55. Pork cutouts 
totaled 187.76 loads with 165.75 loads of pork cuts and 22.01 loads of trim. 
Pork cutout values: down $1.22, $94.17.

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




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