DTN Midday Livestock Comments          09/11 11:37

   Wednesday Brings a Mixed Market to the Livestock Complex 

   The livestock complex is a mixed marketplace Wednesday morning as hogs 
continue to trend higher but the cattle contracts are worried about what the 
Federal Reserve is going to do this month following this morning's Consumer 
Price Index report. 

ShayLe Stewart
DTN Livestock Analyst

GENERAL COMMENTS:

   Wednesday morning inflation data for August was released which shared that 
the Consumer Price Index climbed 2.5% compared to a year ago, which has 
negatively affected both the equity and cattle markets as there are concerns 
about how much the Federal Reserve will cut interest rates this month. Still no 
cash cattle trade has developed, but a sole bid is offered in Kansas at $178. 
December corn is steady and December soybean meal is up $2.40. The Dow Jones 
Industrial Average is down 426.83 points.

LIVE CATTLE:

   It's another day of doggish trade for the live cattle complex as the market 
can't seem to summon support from any angle. With the equity markets on edge 
because of concerns about how the Federal Reserve will react to today's 
Consumer Price Index data, traders are again uneasy in the marketplace which is 
affecting the live cattle market too. Still no cash cattle trade has developed 
and it's looking like the week's trade could be delayed until Thursday or 
Friday. Feedlots aren't in a rush to market any cattle as they'd like to see 
prices hold steady, and thankfully their showlists are smaller this week. There 
is a single bid currently offered in Kansas at $178, but otherwise the market 
is silent. October live cattle are down $0.65 at $175.67, December live cattle 
are down $0.52 at $175.90 and February live cattle are down $0.52 at $177.00.

   Boxed beef prices are lower: choice down $0.22 ($308.01) and select down 
$2.54 ($294.47) with a movement of 99 loads (61.89 loads of choice, 21.49 loads 
of select, zero loads of trim and 15.14 loads of ground beef).

FEEDER CATTLE:

   Even though the feeder cattle complex was able to take on Tuesday's market 
without the support of the live cattle contracts, today's added pressures with 
the equity markets trading lower are too much for feeders to handle. October 
feeders are down $0.27 at $235.12, November feeders are down $0.40 at $231.87 
and January feeders are down $0.77 at $227.45. It's likely the complex will 
continue to chop sideways/trade lower throughout the day as traders aren't 
likely to find any unforeseen support in Wednesday's remaining hours.

LEAN HOGS:

   The cattle complex may be reacting poorly to the CPI news shared this 
morning, but the lean hog market is unfazed as it continues to trade higher. 
October lean hogs are up $0.75 at $79.30, December lean hogs are up $0.97 at 
$72.12, and February lean hogs are up $0.57 at $75.60. But Wednesday's support 
is currently being technically driven as pork cutout values and cash prices 
aren't lending support. Traders will be anxious come Thursday morning to get 
the week's export data as thus far this week domestic consumer support has been 
lacking.

   Hog prices are unavailable because of confidentiality on the Daily Direct 
Morning Hog Report, however we can see only 1,080 head have traded and the 
market's five-day rolling average now sits at $77.57. Pork cutouts total 226.57 
loads with 176.11 loads of pork cuts and 50.46 loads of trim. Pork cutout 
values: down $1.52, $93.28.

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

   **

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