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DTN Midday Livestock Comments 12/10 11:37
Traders Allow Livestock Contracts to Inch Higher
Traders continue to look for fundamental support to develop.
ShayLe Stewart
DTN Livestock Analyst
GENERAL COMMENTS:
The livestock complex is trading mostly higher into midday Wednesday as
traders remain hopeful that the market's support is going to come to fruition
at some point this week. A single bid is currently on the table in Nebraska,
but no cattle have traded yet. March corn is down 3 1/4 cents per bushel and
January soybean meal is down $0.00. The Dow Jones Industrial Average is up
212.66 points and the NASDAQ is down 64.33 points.
LIVE CATTLE:
Although just mild at this point, the live cattle complex is pushing a minor
rally into Wednesday's noon hour. Traders are simply "working with what they've
got" as they desire to push the complex higher but can only do so in a cautious
manner as they're nearing the market's 100-day moving average, which at this
point remains too much of a resistance plane to tackle. December live cattle
are down $0.75 at $226.07, February live cattle are up $0.75 at $227.70 and
April live cattle are up $0.52 at $227.42. A single bid has surfaced in the fed
cash cattle market at $222 live in Nebraska. So far, it's being passed, and no
other business has developed. Asking prices are still unknown at this point.
Boxed beef prices are lower: choice down $2.00 ($359.04) and select down
$1.60 ($346.43) with a movement of 89 loads (60.22 loads of choice, 12.30 loads
of select, 5.44 loads of trim and 10.66 loads of ground beef).
FEEDER CATTLE:
With corn prices down $0.04 to $0.05 this morning, and with the live cattle
complex allowing for a mild rally in its market, the feeder cattle complex has
taken the liberty to trade its market $1.00 to $2.00 higher into midday
Wednesday. January feeders are up $2.27 at $337.77, March feeders are up $2.17
at $332.32 and April feeders are up $1.95 at $331.42. At this point, it's
unlikely that the market will trade much higher as there has not been any
significant fundamental development to give traders enough encouragement to
break through the market's resistance at the 100-day moving average. But when
the fed cash cattle market begins to trade this week, if prices are
substantially higher again this week, then that may be the silver lining that
traders needed.
LEAN HOGS:
The lean hog complex continues to hover around its resistance threshold at
$82.00 in the spot February contract as the market desires to trade higher, but
hasn't seen enough sure-fire support in the complex just yet to justify
challenging that threshold. December lean hogs are up $0.02 at $82.52, February
lean hogs are up $0.50 at $82.37 and April lean hogs are up $0.80 at $87.32.
Yes, pork cutout values are a tick higher this morning, but traders need more
support than a $0.33 jump in the carcass price.
The projected lean hog index for 12/9/2025 is up $0.27 at $82.16, and the
actual index for 12/8/2025 is up $0.05 at $81.89. Due to packer submission
issues, the Daily Direct Hog Report is delayed at this time. Pork cutouts total
200.52 loads with 189.80 loads of pork cuts and 10.72 loads of trim. Pork
cutout values: up $0.33, $96.77.
ShayLe Stewart can be reached at shayle.stewart@dtn.com
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