DTN Midday Livestock Comments 04/19 11:55

Traders Pull Back Ahead of the Week's Cattle on Feed Report

A few cattle have traded in the North for $292 which is $1.00 lower than
last week's weighted average, and Southern live cattle are currently trading at
$182 which is steady with last week's weighted average.

ShayLe Stewart
DTN Livestock Analyst

GENERAL COMMENTS:

The livestock complex is trading mixed into Friday's noon hour as the cattle
sector is trading mildly lower ahead of seeing the afternoon's Cattle on Feed
report, but the hog complex is trading higher amid better consumer demand. A
little bit of cash cattle trade has developed -- with prices trading $1.00
lower in the North but remaining steady in the South, but more trade will need
to develop ahead of the week's end. May corn is up 6 cents per bushel and July
soybean meal is up $5.90. The Dow Jones Industrial Average is up 69.71 points.

LIVE CATTLE:

Although traders would like to make a move in the live cattle market, the
market's support won't likely come to fruition ahead of the week's end. With
Northern cash cattle beginning to trade at $292 which is $1.00 lower than last
week's weighted average, and the monthly Cattle on Feed report set to be
released later this afternoon, it's most likely that traders keep with their
cautious, lower trend though the afternoon and through the day's close. June
live cattle are down $0.32 at $175.05, August live cattle are down $0.50 at
$173.02 and October live cattle are down $0.42 at $176.30. A handful of cattle
have sold in the South for $182 which is steady with last week's weighted
average, but total trade volumes remain incredibly light in both regions.
Southern asking prices remain firm at $184 to $185, and at $295 plus for
Northern dressed cattle.

Boxed beef prices are higher: choice up $0.13 ($295.93) and select up $1.80
($291.07) with a movement of 90 loads (55.46 loads of choice, 11.25 loads of
select, 13.92 loads of trim and 8.92 loads of ground beef).

FEEDER CATTLE:

Given that the live cattle contracts are trading lower, that cash cattle
trade is being reported at steady to $1.00 lower and that the nearby corn
contracts are trading $0.05 to $0.06 higher -- it's not surprising to see the
feeder cattle contracts trading lower into Friday's noon hour. May feeders are
down $1.05 at $241.50, August feeders are down $1.35 at $252.95 and September
feeders are down $1.42 at $253.87. Not to mention, with the monthly Cattle on
Feed report set to be unveiled later this afternoon, traders normally pull back
ahead of that report's monthly showcasing. Placements are expected to be lower
(following last month's 110% showing), but total on feed numbers are
anticipated to be greater than a year ago with weaker marketings.

LEAN HOGS:

The lean hog complex has shaken the blues which its market possessed through
Thursday's trade and is trading notably higher into Friday's noon hour. It
comes as no surprise to see that cash prices are lower given that packers
fulfilled their needs earlier in the week, but it is supportive to note that
midday pork cutout values are higher and that the carcass prices are being
supported by subtle gains across nearly all the cuts -- not by one wild price
swing in one cut. Like we commonly see in the belly's volatility. June lean
hogs are up $1.90 at $104.60, July lean hogs are up $1.90 at $106.25 and August
lean hogs are up $1.97 at $103.75.

The projected lean hog index for April 18 is down $0.11 at $91.35, and the
actual index for April 17 is up $0.10 at $91.46. Hog prices are lower on the
Daily Direct Morning Hog Report, down $1.80 with a weighted average price of
$88.69, ranging from $83.00 to $92.00 on 723 head and a five-day rolling
average of $88.87. Pork cutouts total 146.32 loads with 133.51 loads of pork
cuts and 12.81 loads of trim. Pork cutout values: up $1.06, $101.02.

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








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