DTN Midday Livestock Comments          02/18 12:11

   Keeping the Ball Rolling 

   Livestock contracts open the week with a strong push to keep the market 
trading higher. 

By ShayLe Stewart
DTN Livestock Analyst

General Comments

   Maybe the secret this week was having Monday off? Regardless of what the 
trick was, livestock contracts have been able to keep the market trading higher 
and cash markets are expected to perform well this week too. 

   March corn is up 3 1/2 cents per bushel and March soybean meal is up $1.40. 
The Dow Jones Industrial Average is down 246.27 points and NASDAQ is down 41.31 
points. 

   LIVE CATTLE 

   Live cattle contracts keep Friday's positive close in mind as most of the 
complex moves higher as the noon hour approaches. February live cattle are up 
$0.45 at $121.27, April live cattle are up $0.15 at $120.47 and June live 
cattle are up $0.20 at $112.10. It's seeming that the week may be back to a 
more usual trade pattern with live cattle trading in the later part of the 
week. The countryside is quiet at midday with not yet fully established though 
there are a few scattered asking prices in Texas at $122. Seeing that cutout 
values are expected to rise from here on out and that packers are short bought 
on cattle, it wouldn't be surprising to see the market's positivity trickle 
into the cash market later this week as well. 

   Boxed beef prices are lower: choice down $0.86 ($206.40) and select down 
$1.60 ($204.58) with a movement of 72 loads (37.11 loads of choice, 11.14 loads 
of select, 6.56 loads of trim and 16.89 loads of ground beef). 

   FEEDER CATTLE 

   Feeder cattle prices saw a slight increase throughout sales barns last week 
as availability for certain weight groups is becoming harder and harder to come 
by. Weather will be a big factor moving forward on how sale barn prices perform 
because whenever cattle are dirty from wet conditions, prices see a small dip 
and obviously the ease of getting cattle to the ring depends on road 
conditions. The feeder cattle futures market is still pressing forward for 
gains as the noon hour approaches. March feeders are up $0.65 at $139.17, April 
feeders are up $0.37 at $141.75 and May feeders are up $0.35 at $143.55.  

   LEAN HOGS 

   It's been a powerful Tuesday morning for the lean hog market as advancements 
are seen across the board, rallying support from both traders and packers. 
April lean hogs are up $1.25 at $65.52, May lean hogs are up $0.70 at $73.70 
and June lean hogs are up $0.22 at $81.12. Last week packers pushed 
aggressively to process hogs but are expected to start backing off on their 
rigorous kill schedules and producers will have to be cautious of hog weights 
when moving forward. 

   The projected lean hog index for 2/17/2020 is down $0.31 at $55.66, and the 
actual index for 2/14/2020 is down $0.41 at $55.97. Hog prices are higher on 
the National Direct Morning Hog Report, up $2.46 with a weighted average of 
$50.46, ranging from $45.00 to $53.00 on 5,063 head sold and five-day rolling 
average of $49.51. Pork cutout total 214.34 loads with 191.38 loads of pork 
cuts and 22.97 loads of trim. Pork cutout values: up $2.13, $64.99. 

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


(CZ)

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