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DTN Midday Livestock Comments          09/25 12:09

   Cattle Contracts Hesitant of COF Report

   Cattle contracts are left with no option but to trade lower as traders fear 
Friday's Cattle on Feed Report.

ShayLe Stewart
DTN Livestock Analyst

   General Comments

   The cattle complex is left trading lower as the market is hesitant about 
Friday's afternoon Cattle on Feed Report. Throughout the countryside a few more 
cash cattle bids have been renewed in parts of Kansas and Nebraska, but thus 
far they simply remain as bids. The lean hog market is seeing strong, positive 
trade throughout nearby contracts, and some modest gains throughout deferred 
contracts. December corn is up 3 3/4 cents per bushel and December soybean meal 
is up $2.50. The Dow Jones Industrial Average is up 44.25 points and NASDAQ is 
up 107.08 points.


   The live cattle contracts are feeling some modest pressure from the board as 
contracts dipping $0.07 to $0.60 lower. The live cattle complex feels like it's 
left balancing two different signals as the week concludes. Following 
Thursday's strong cash advancement, the market should be robust and confident, 
but with weakness plaguing the board and a bearish COF report expected to round 
out Friday's business, the market braces cautiously. October live cattle are 
down $0.05 at $107.97, December live cattle are down $0.45 at $111.82 and 
February live cattle are down $0.65 at $115.00. Friday's cash cattle trade is 
still mostly quiet as bids of $105 are offered in Kansas, and bids of $104 to 
$106, as well as $164 to $165 are offered in Nebraska. Some more trade should 
develop before the day's end.

   Boxed beef prices are mixed: choice up $1.74 ($219.22) and select down $0.37 
($207.37) with a movement of 67 loads (32.54 loads of choice, 17.48 loads of 
select, 10.56 loads of trim and 6.07 loads of ground beef).


   Another day of looming pressure sends the feeder cattle contracts lower as 
the market searches for support while trying to secure position amid a $0.03 
corn rally. October feeders are down $0.75 at $141.52, November feeders are 
down $0.75 at $141.60 and January feeders are down $0.75 at $140.20. Knowing 
that placements are expected to be significantly higher than a year ago on 
Friday's COF report, the feeder cattle market sits patiently, trending lower 
throughout Friday's morning trade.


   Rebounding from Thursday's reports and the lack of trader interest, the lean 
hog complex is seeing substantial gains in nearby contracts and modest support 
through deferred contracts. October lean hogs are up $2.32 at $71.80, December 
lean hogs are up $1.42 at $64.70 and February lean hogs are up $1.10 at $69.60. 
The followed through support from the cash market and modest growth through the 
cutout value helped solidify the fact that the market was OK, and able to 
continue with advancing.

   The projected two-day lean hog index for 9/24/2020 is up $0.83 at $74.53, 
and the actual index for 9/23/2020is up $0.81 at $73.70. Hog prices are higher 
on the National Direct Morning Hog Report, up $0.41 with a weighted average of 
$65.01, ranging from $60.00 to $65.01 on 8,193 head and a five-day rolling 
average of $63.26. Pork cutouts total 252.10 loads with 225.18 loads of pork 
cuts and 26.92 loads of trim. Pork cutout values: up $0.91, $92.94.

   ShayLe Stewart can be reached


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