Thursday Midday Livestock Market Summary - Feedlots Hold Firm on Asking Prices

GENERAL COMMENTS:

The livestock complex is mostly keeping with its upward trajectory as the contracts again look to the market's fundamentals for support. Thursday afternoon the cash cattle complex is expecting to see more trade develop as largely at this point the market still hasn't traded cattle. December corn is up 5 3/4 cents per bushel and December soybean meal is up $9.10. The Dow Jones Industrial Average is up 60.94 points.

LIVE CATTLE:

The live cattle complex is keeping with its aggressive upward move as the market is elated to see feedlots pushing back against packers and demanding more money for fats. Thursday morning bids of $147 have been offered in the South, and bids of $150 live and $235 to $236 dressed have been offered in the North, but at this point feedlots are uninterested in those prices. Asking prices remain firm at $148 in the South and $237 in the North and with front end supplies so thin, packers will likely have to pay-up in order to get the cattle bought that they need. The futures complex is continuing to trade higher as the marekt warmly welcomed the moderately supportive export report. December live cattle are up $0.20 at $151.55, February live cattle are up $0.35 at $154.60 and April live cattle are up $0.05 at $157.35. Now that the market is nearing resistance levels, steady, consistent support from the fundamental side of the marekt is innately important.

Beef net sales of 16,600 mt for 2022 were primarily for South Korea (7,100 mt), Japan (3,600 mt) and China (2,000 mt).

Boxed beef prices are higher: choice up $0.93 ($254.32) and select up $0.21 ($222.40) with a movement of 79 loads (42.11 loads of choice, 16.08 loads of select, 5.39 loads of trim and 15.59 loads of ground beef).

FEEDER CATTLE:

With the corn complex pushing a $0.05 to $0.06 rally into Thursday's noon hour, the feeder cattle contracts are trading mostly lower. November feeders are down $0.85 at $177.20, January feeders are down $1.22 at $178.85 and March feeders are down $1.15 at $181.17. Even though feedlots are flexing their power in the cash cattle market this week, feeders are thankful to see the cash market gaining momentum, but they're equally as concerned about feed prices. Until harvest is completely done with, the feeder cattle market will continue to closely watch any changes in the grain sector.

LEAN HOGS:

Getting market relevant data for the lean hog complex was a swing and a miss Thursday morning with everything being delayed. But when looked at from just a technical sense, the lean hog complex is mostly keeping with its upward approach to the markets, but the spot December contract is beginning to sweat now that it's approaching resistance. Thursday morning's export report was supportive as the market sold 40,800 metric tons pork. December lean hogs are down $0.20 at $87.15, February lean hogs are up $0.05 at $89.05 and April lean hogs are up $0.07 at $92.82. The market could trade steadily until next week. The projected lean hog index is delayed from the source. Hog prices are unavailable to due packer submission issues. Pork cutout values are unavailable due to packer submission issues.

Pork net sales of 40,800 mt for 2022 were primarily for Mexico (14,800 mt), Japan (11,000 mt) and Australia (3,500 mt).