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DTN Midday Livestock Comments          10/24 12:14

   Cattle Futures Holding Triple-Digit Gains Monday            

   Aggressive triple-digit gains holding at midday following bullish cattle on 
feed report Friday moving buyers back into the market. Trade volume is sluggish 
in most areas, although price levels remain firm.      

By Rick Kment
DTN Analyst


   Strong buyer support is holding across cattle trade as bullishness from the 
cattle on feed report helped to spark increased support in the live cattle and 
feeder cattle markets. Triple-digit gains are holding since prices surged 
higher at opening bell, although additional support has been hard to find 
through most of the day with very little increased volume stepping into the 
market. Corn prices are lower in light trade. December corn futures are 4 cents 
lower per bushel. Stock markets are higher in light trade. The Dow Jones is 66 
points higher while Nasdaq is up 41 points.


   Sharp gains are holding Monday morning in live cattle futures with nearby 
futures holding gains of $2.20 to $2.50 per cwt based on tighter supplies of 
cattle in feedlots. The expectation that supplies are increasing may continue 
to keep buyers active through the session and may bring about additional 
support through the next couple of trading session. Cash cattle markets are 
quiet early Monday morning although the focus is currently on the aggressive 
gains in futures trade following the strong support in the cattle on feed 
report seen Friday afternoon. Beef cut-outs at midday are mixed $0.26 lower 
(select) and up $1.18 per cwt (choice) with light movement of 64 total loads 
reported (34 loads of choice cuts, 13 loads of select cuts, 1 load of 
trimmings, 16 loads of ground beef). 


   October feeder cattle futures have posted a narrow gain with 47 cent gains 
as traders are focusing on more aggressive support in deferred contracts. The 
support is seen in November and January contracts with gains in these contracts 
holding $2.80 to $3 per cwt midday as the support seen from sharply lower than 
expected cattle placements in the October 1 cattle on feed report is helping to 
draw buyer support back into the market. 


   Follow through support has quickly moved into front month December lean hog 
futures with support seen in the cattle market holding through the morning and 
able to spill over to the hog complex. The ability to sustain price levels over 
$43 per cwt in front-month lean hog futures could spark additional buying 
interest over the near future and bring about more long-term buying activity in 
not only nearby contracts, but also the rest of the hog complex. Cash prices 
are lower on the National Direct morning cash hog report. The weighted average 
price fell $0.80 per cwt to $44.42 per cwt with the range from $42.00 to $46.50 
on 2,523 head reported sold. Cash prices are lower on the Iowa Minnesota Direct 
morning cash hog report. The weighted average price fell $0.01 per cwt to 
$45.80 per cwt with the range from $42.00 to $46.50 on 915 head reported sold. 
The National Pork Plant Report reported 142 loads selling with prices adding 
$0.99 per cwt. Lean hog index for 10/20 is at $52.49 up $0.17 with a projected 
two-day index of $51.85 down $0.64. 

   Rick Kment can be reached at 


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