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DTN Midday Livestock Comments          08/03 12:30

   Cattle Contracts Move Higher

   Thankfully the live cattle complex led the path to higher prices Monday 
morning which helped encourage the feeder cattle complex to not fall below 
Friday's big jump.

ShayLe Stewart
DTN Livestock Analyst

   General Comments

   Though feeder cattle contracts flirted with some pressure at midmorning, the 
complex is now trading higher in nearby contracts and lower in deferred. 
Thankfully the feeder complex was able to ride on the shirttails of the live 
cattle complex which has traded steadily higher throughout all of Monday's 
early trade. December corn is down 1/4 cent per bushel and December soybean 
meal is steady. The Dow Jones Industrial Average is up 241.65 points and NASDAQ 
is up 157.13 points.

   LIVE CATTLE

   The live cattle contracts traded steadily higher Monday morning, encouraging 
the feeder cattle complex to do the same and saved feeder contracts from 
dipping into Friday's price range. August live cattle are up $0.07 at $102.90, 
October live cattle are up $0.15 at $108.02 and December live cattle are up 
$0.15 at $111.70. It will be interesting to see where cash cattle prices land 
this week as showlists are mixed, but consensus is growing that the backlog of 
cattle is growing smaller and smaller. That's not to say that there aren't 
still 1,400- to 1,500-pound fat cattle throughout the countryside that need 
processed, but lighter cattle are hitting the knife now too. New showlists 
appear to be mixed, somewhat higher in Nebraska/Colorado, lower in Texas, and 
sharply lower in Kansas. Establishing the week's asking prices will be the 
first matter of business, and feeders could show some sign of where asking 
prices will be something Monday afternoon or early Tuesday.

   Last week's negotiated cash cattle sales totaled 119,851 head. Of that 
104,738 head are committed for delivery in the next two weeks while the 
remaining 15,113 head are scheduled for the following 15-30 day delivery.

   Boxed beef prices are higher: choice up $0.69 ($203.95) and select up $0.04 
($189.93) with a movement of 50 loads (24.27 loads of choice, 10.90 loads of 
select, 9.58 loads of trim and 5.42 loads of ground beef).

   FEEDER CATTLE

   Feeder cattle contracts have been the leading force of the livestock complex 
over the last month leading the industry higher and breaking a path for live 
cattle contracts to follow. Last Friday closed above the resistance plane at 
$143.85 and thus far through Monday's trade the market has kept prices above 
that threshold. Deferred contracts are enduring some pressure; trading $0.37 to 
$0.75 lower but a higher trade in nearby contracts is still a win as the market 
broke through some prolific pressure. August feeders are up $0.27 at $145.10, 
September feeders are up $0.82 at $147.07 and October feeders are up $0.60 at 
$147.25.

   LEAN HOGS

   Hog prices continue in last week's downward trend as the industry struggles 
to surpass the pressure that has kept contracts below $55.00 in most nearby 
months. August lean hogs are down $1.67 at $50.32, October lean hogs are down 
$0.70 at $48.95 and December lean hogs are down $0.25 at $50.10. Higher midday 
cash prices are somewhat of an encouraging treat but the industry would still 
like to see more hogs move as achieving current-ness is the biggest goal that 
will consequently lead to stronger prices.

   The projected lean hog index for 7/30/2020 is down $0.04 at $53.52 and the 
actual index for 7/29/2020 is up $0.61 at $53.56.Hog prices are higher on the 
National Direct Morning Hog Report, up $0.21 with a weighted average of $41.15, 
ranging from $37.00 to $41.27 on 3,460 head and a five-day rolling average of 
$41.61. Pork cutouts total 179.99 loads with 162.23 loads of pork cuts and 
17.76 loads of trim. Pork cutout values: up $7.56, $72.87.

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

    




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