DTN Midday Livestock Comments          12/12 11:52

   Bids Surface at $305 in Nebraska 

   Some more cash cattle trade could develop later Thursday afternoon as 
packers still seem to be short bought. 

ShayLe Stewart
DTN Livestock Analyst

GENERAL COMMENTS:

   The livestock complex is trading mixed into Thursday's noon hour as traders 
are waiting to see what else develops in this week's cash cattle market. The 
lean hog contracts have thankfully turned direction and are again trading 
higher. Bids of $305 have surfaced in Nebraska, but feedlot managers have 
chosen to pass the offer at this point. March corn is down 5 cents per bushel 
and January soybean meal is down $2.90. The Dow Jones Industrial Average is 
down 70.09 points.

   Thursday's export report shared that beef net sales of 11,000 metric tons 
(mt) for 2024 were up noticeably from the previous week and up 32% from the 
prior 4-week average. The three largest buyers were South Korea (3,400 mt), 
Japan (3,400 mt) and Mexico (1,400 mt). Pork net sales of 22,500 mt for 2024 
were down 36% from the previous week and 1% from the prior 4-week average. The 
three largest buyers were Mexico (9,100 mt), Japan (4,500 mt) and China (2,700 
mt).

LIVE CATTLE:

   As traders continue to wait to see what the rest of the week is going to do 
with the cash cattle market -- slightly weaker tones have settled in the 
futures complex. Already this week, Southern live cattle have traded anywhere 
from $191 to $192, which is steady to $2.00 higher, and Northern dressed cattle 
have traded at mostly $300, which is $3.00 higher than last week's weighted 
average. But as of Thursday morning, whopping bids of $305 dressed have 
surfaced in Nebraska, and feedlots are letting them sit idle. You read that 
correctly, feedlots are passing on the bids of $305 in Nebraska! We understood 
packers were short going into this week's market, but for feedlot managers to 
be bold enough to pass on $305 indicates they are aware of just how 
short-bought packers are and they don't intend to squander the opportunity 
presented to them this week. December live cattle are down $0.05 at $192.20, 
February live cattle are down $0.37 at $191.00, and April live cattle are down 
$0.45 at $192.17.

   Boxed beef prices are unavailable as the USDA is currently experiencing 
technical difficulties.

FEEDER CATTLE:

   The feeder cattle complex is following in the footsteps of the live cattle 
complex as it too is trading slightly lower. The spot January contract is 
currently trading at resistance levels and Thursday's pressure will likely mean 
the complex won't surpass that threshold. Nevertheless, Thursday's weakness 
throughout the futures complex won't likely have any effect in the countryside 
as, fundamentally, the power remains evident. January feeders are down $0.35 at 
$258.70, March feeders are down $0.50 at $258.87, and April feeders are down 
$0.75 at $259.42.

LEAN HOGS:

   The lean hog complex may have found some technical support as the contracts 
are again higher after falling substantially lower earlier this week. Weak 
consumer demand has plagued the market as of late and without traders seeing 
the fundamental support they'd ideally like to see they opted to let the 
contracts drift lower earlier this week. But Thursday seems to present some new 
opportunities as the nearby contracts are trading higher. February lean hogs 
are up $0.02 at $84.37, April lean hogs are up $0.17 at $88.42, and June lean 
hogs are up $0.15 at $99.67.

   The projected CME Lean Hog Index for 12/11/2024 is up $0.30 at $83.91, and 
the actual index for 12/10/2024 is up $0.29 at $83.61. Hog prices are lower on 
the Daily Direct Morning Hog Report, down $3.35 with a weighted average price 
of $79.08, ranging from $72.00 to $83.50 on 1,903 head. Pork cutout values are 
unavailable as the USDA is currently experiencing technical difficulties.

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




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