DTN Midday Livestock Comments          01/09 11:35

   Traders Pull Back the Reins on Livestock Contracts

   Bids are currently on the table in all regions, but no new cash cattle trade 
has developed yet.

ShayLe Stewart
DTN Livestock Analyst

GENERAL COMMENTS:

   The livestock complex is trading mostly lower into midday on Friday, as 
traders remain skeptical of advancing the contracts further ahead of Friday's 
close. No new cash cattle trade has developed, but some more trade should 
develop this afternoon, especially in the South. March corn is up 1 1/4 cents 
per bushel and March soybean meal is up $0.40. The Dow Jones Industrial Average 
is up 286.48 points and the NASDAQ is up 187.77 points.

LIVE CATTLE:

   Although the fed cash cattle market has shown traders that the market's 
trend is most likely going to be higher this week, the live cattle contracts 
are slowly trading lower into Friday's noon hour. February live cattle are down 
$1.37 at $233.90, April live cattle are down $1.40 at $234.82 and June live 
cattle are down $1.32 at $229.95. Bids are on the table for the fed cash cattle 
market, with offers of $232 live being offered in Texas, Kansas and Nebraska. 
So far, feedlot managers appear firm in their asking price of $235 to $237 for 
live cattle, and $367 or more in the North. No new trade has developed today 
following the light business that developed on Thursday in the North, where 
dressed cattle traded at mostly $365, which is $5.00 higher than the previous 
week's weighted average.

   Boxed beef prices are lower: choice down $1.55 ($355.24) and select down 
$0.62 ($351.44) with a movement of 86 loads (67.09 loads of choice, 4.94 loads 
of select, 3.90 loads of trim and 10.36 loads of ground beef).

FEEDER CATTLE:

   And once again, in keeping with the same trend as the live cattle complex, 
the feeder cattle contracts are also trading lower into midday Friday. January 
feeders are down $2.30 at $360.30, March feeders are down $3.15 at $354.57 and 
April feeders are down $3.47 at $353.15. And unless the live cattle complex 
turns higher ahead of the week's end, the feeder cattle contracts will likely 
round out the day lower, too.

LEAN HOGS:

   The lean hog complex is trading mixed into midday Friday, as the nearby 
contracts dip lower, while the deferred contracts trade slightly higher. 
February lean hogs are down $0.35 at $85.52, April lean hogs are down $0.20 at 
$91.72 and June lean hogs are down $0.05 at $104.60. Absorbing the behavior of 
the lean hog complex takes a mixed approach this morning, as one could 
logically point to the uptick in pork cutout values and say that prices should 
be trading higher. However, when you look at the futures complex and note the 
resistance pressure the market is facing, we see there hasn't been enough 
widespread, stable fundamental support this week to encourage traders to 
challenge that technical barrier.

   The projected lean hog index is delayed from the source. Hog prices on the 
Daily Direct Morning Hog Report average $68.56, ranging from $66.00 to $73.00 
on 833 head and a five-day rolling average of $68.56. Pork cutouts total 193.25 
loads with 169.16 loads of pork cuts and 24.08 loads of trim. Pork cutout 
values: up $4.94, $95.73.

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




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