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DTN Midday Livestock Comments          08/17 11:33

   Feedlots Still Waiting for Higher Cash Prices

   The live cattle and feeder cattle contracts are trending higher into 
Wednesday's afternoon as the market anxiously awaits to see just how powerful 
this week's cash cattle trade is.

ShayLe Stewart
DTN Livestock Analyst

GENERAL COMMENTS:

   You've got to commend feedlots in their marketing tactics this week -- 
they've been patient in waiting for the prices they want. Bids of $150 live and 
$237 to $238 dressed have been offered in Nebraska, but otherwise the market 
sits quiet. December corn is up 3 3/4 cents per bushel and December soybean 
meal is up $3.70. The Dow Jones Industrial Average is down 217.16 points.

LIVE CATTLE:

   The live cattle market is pressing onward into Wednesday's market as traders 
push a modest advancement throughout the complex, as everyone anxiously awaits 
to see what this week's cash cattle market accomplishes. So far just a few bids 
of $150 live and $237 to $238 have been offered in Nebraska, but at this point 
those bids are being passed on and feedlots seem dead set on getting $240 plus 
in the North and $143 to $145 in the South. August live cattle are up $0.50 at 
$141.80, October live cattle are up $0.20 at $145.87 and December live cattle 
are up $0.25 at $151.45. Carcass data continues to prove that showlists are 
extremely current and it's not unlikely that feedlots get their asking price or 
more this week. Trade is expected to develop Wednesday afternoon.

   The Fed Cattle Exchange Auction held today reported eight lots, totaling 
1,203 head of cattle, all from Texas and none of which sold.

   Boxed beef prices are mixed: choice up $0.06 ($265.50) and select down $0.56 
($238.56) with a movement of 88 loads (42.02 loads of choice, 14.31 loads of 
select, 9.42 loads of trim and 22.63 loads of ground beef).

FEEDER CATTLE:

   Even with a slight $0.02 to $0.04 advancement in the nearby corn contracts, 
the feeder cattle contracts are all trading higher as the market beams in 
excitement to see the live cattle market trending higher. If the corn complex 
poses much more of a threat, then the feeders will have to weigh the imposing 
threat of higher corn against what the live cattle market is accomplishing, but 
if cash cattle price advance $2.00 or more again this week, then feeders are 
going to be ecstatic. August feeders are up $1.42 at $182.95, September feeders 
are up $1.75 at $187.22 and October feeders are up $1.62 at $189.55.

LEAN HOGS:

   The lean hog market is trending modestly higher into Wednesday's afternoon 
as the market has found support after Tuesday's blood bath. October lean hogs 
are up $0.92 at $97.50, December lean hogs are up $0.10 at $87.80 and February 
lean hogs are up $0.35 at $90.60. The cash hog market is again seeing strong 
interest as packers obviously didn't fulfill all their needs in Tuesday's 
market. Midday pork cutout values are higher (which isn't anything to put too 
much faith in), but if pork cutout values can round out the day higher, then 
the market may be able to keep a sideways/modestly higher trend going as 
Tuesday worked the market low enough that resistance pressure isn't an 
immediate threat.

   The projected lean hog index for Aug. 16 is down $0.44 at $120.62 and the 
actual index for Aug. 15 is down $0.65 at $121.06. Hog prices are higher on the 
Daily Direct Morning Hog Report, up $8.32 with a weighted average of $128.87, 
ranging from $114.00 to $136.00 on 14,387 head and a five-day rolling average 
of $123.48. Pork cutouts total 160.13 loads with 140.79 loads of pork cuts and 
19.34 loads of trim. Pork cutout values: up $2.38, $123.53.

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




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