DTN Midday Livestock Comments 10/17 12:06
Cattle Contracts Lower, African Swine Fever Outbreak Growing
Thursday's headline of lower markets only gets worse when news continues to
break about more confirmed outbreaks of African swine fever.
By ShayLe Stewart
DTN Livestock Analyst
Cattle markets drop lower and lower and the world's fight with African swine
fever continues. Livestock markets aren't performing well Thursday with feeder
cattle and lean hog contracts taking the biggest losses. December corn is up 3
cents per bushel and December soybean meal is up $2.30. The Dow Jones
Industrial Average is down 21.25 points and NASDAQ is up 16.67 points.
Live cattle prices are weaker Thursday morning. The December market opened
steady but has since softened and is trading $0.07 lower at $113.80. All other
markets are taking the day's arrival harder ranging $0.12 to $1.00 lower.
Thursday's hesitant nature isn't going to summon higher cash prices easily. A
bid of $173 has been placed in Nebraska and bids of $175 in Iowa, but as of
right now it looks as if this week will be a later trading week again. Still
unaware of the explosion's mass and importance, Cargill announced Thursday
morning that a standalone building as part of the Dodge City, Kansas, plant
exploded. The plant will be close as a precautionary measure. Cargill plans to
meet all its supply commitments to beef buyers.
Midday boxed beef prices are up: choice up $0.51 ($218.79) and select up
$0.06 ($191.43). Thursdays offering of boxed beef totals 55 loads (28.82 loads
of choice, 10.32 loads of select, 5.25 loads of trim and 10.69 loads of ground
All feeder cattle markets are down over $1.00 with some markets nearing
$2.00 lower. October feeder cattle are down $1.50 at $143.75, and November
feeder cattle are down $2.00 at $143.92. Is it weakness seeping over from the
live cattle market? Is it the market correction that analysts have been
muttering about? Or is it more industry based and a reflection of saturated
sale barn markets? Regardless of the reason, feeder cattle markets are down and
don't look promising for the rest of the day.
With more alarming news of new cases of African swine fever, the lean hog
market softens, and U.S. hog producers eagerly wait for a more news about
export opportunities. December lean hogs are down $2.37 at $68.25. Nearby
contracts are taking the day's storm the hardest, deferred contracts are lower
but most still only gave up less than 50 cents. Thursday morning news broke
that the small island of Timor-Leste has had 100 confirmed outbreaks of the
disease, and at least 400 mortalities. The island is only 400 miles from
The projected lean hog index for 10/16/19 is up $0.96 at $64.90, and the
actual lean hog index for 10/15/19 came to $63.94, up $1.02. Prices are down on
the National Direct Morning Hog Report, down $1.03 with a weighted average of
$57.65, ranging from $54.00 to $60.00 on 3,100 head sold and a five-day rolling
average of $57.55. Pork cutouts totaled 175.26 loads with 143.84 loads of pork
cuts and 31.42 loads of trim. Pork cutout values are down $1.04 at $76.68.
ShayLe Stewart can be reached email@example.com
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