DTN Midday Livestock Comments          10/31 11:30

   Packers Need to Secure More Inventory to Avoid Being Short Bought

   No new cash cattle trade has developed Friday, but packer interest should 
improve any moment. 

ShayLe Stewart
DTN Livestock Analyst

GENERAL COMMENTS:

   Mixed tones are again being seen across the livestock complex as the cattle 
contracts are trading mostly lower, but the lean hog contracts have finally 
found some mild support. Still no new cash cattle trade has developed, but 
packers will likely get more aggressive Friday afternoon as they need to secure 
more inventory to avoid being short bought. December corn is up 1 1/2 cents per 
bushel and December soybean meal is up $4.60. The Dow Jones Industrial Average 
is down 51.33 points and NASDAQ is up 133.12 points.

LIVE CATTLE:

   The live cattle complex is trading lower into Friday's noon hour as the 
market has exhausted the mild support it found midweek. With no positive notes 
developing from the fed cash cattle market, or sharply higher boxed beef 
prices, traders are remaining cautious players in the cattle complex as there's 
been so much volatility over the last two weeks. December live cattle are down 
$1.37 at $229.67, February live cattle are down $1.42 at $228.07 and April live 
cattle are down $1.42 at $227.27. No more trade has developed in the fed cash 
cattle market, but traders will need to secure more supply this afternoon to 
avoid being short bought heading into next week. Asking prices are noted at 
$238 to $240 but are still not established in the North.

   Thus far this week Northern dressed cattle have traded at mostly $358 to 
$360, which is $9.00 to $11.00 lower than the previous week's weighted average, 
and although only a handful of cattle have traded in the South, Southern live 
cattle have been marked at mostly $235, which is $3.00 to $4.00 lower than the 
previous week's weighted average.

   Boxed beef prices are mixed: choice up $0.40 ($378.67) and select down $0.29 
($359.23) with a movement of 77 loads (59.22 loads of choice, 6.92 loads of 
select, 4.82 loads of trim and 6.41 loads of ground beef).

FEEDER CATTLE:

   Following right in line with the live cattle market's trend Friday morning, 
feeder cattle contracts are trading mostly lower into the noon hour. Although 
feeder cattle aren't trading as sharply lower in the countryside as they were 
late last week and even earlier this week, the market continues to see cattle 
trading cheaper as a tremendous amount of confidence has been stripped from the 
marketplace. Although buyers know that supplies are thin, they were keenly 
reminded the last two weeks that regardless of whatever the market's 
fundamentals are volatility will always be a big player in the cattle complex. 
November feeders are down $0.97 at $340.85, January feeders are down $0.55 at 
$333.67 and March feeders are down $0.32 at $328.90.

LEAN HOGS:

   After having trailed lower throughout most of the week, the lean hog complex 
has finally stumbled into some mild technical support as the contracts are 
trading mixed into Friday's noon hour. December lean hogs are up $0.70 at 
$81.52, February lean hogs are up $0.22 at $82.32 and April lean hogs are up 
$0.07 at $86.17. Yes, pork cutout values are up a tick Friday morning, which 
traders could be mindful of; but more than anything ahead of today's close 
traders seem to be acknowledging the sharp decline the market has made this 
week and are letting the contracts find a little support ahead of the week's 
end.

   The projected CME Lean Hog Index is delayed from the source. Hog prices on 
the Daily Direct Morning Hog Report average $85.41, ranging from $84.00 to 
$86.00 on 309 head and a five-day rolling average of $87.94. Pork cutouts total 
270.68 loads with 235.69 loads of pork cuts and 34.99 loads of trim. Pork 
cutout values: up $2.58, $102.86.

    

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




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