DTN Midday Livestock Comments          12/15 11:30

   Traders Hold Livestock Contracts Steady Waiting for Demand

   The livestock complex is trading mostly lower into midday Monday as traders 
want to see what develops fundamentally this week before they push the 
contracts any higher.

ShayLe Stewart
DTN Livestock Analyst

GENERAL COMMENTS:

   The livestock complex is trading mixed into Monday's noon hour as traders 
sit tight, waiting to see what fundamental support arises this week. But unless 
something powerful happens in the cattle complex, it's unlikely that trades are 
going to trade the market above its 100-day moving average any time soon. March 
corn is down 2 1/2 cents per bushel and January soybean meal is up $1.00. The 
Dow Jones Industrial Average is down 127.50 points and the NASDAQ is down 92.92 
points.

LIVE CATTLE:

   Once again, backed up against the market's 100-day moving average, the live 
cattle complex is on pins and needles as it desires to trade higher, but 
traders aren't confident that the market possesses enough support to conquer 
its 100-day moving average. December live cattle are up $0.40 at $230.20, 
February live cattle are up $0.45 at $230.00 and April live cattle are up$0.05 
at $229.45. It's unlikely that the fed cash cattle market will jump above that 
threshold early in the week, as traders will need to see strong developments in 
the market's fundamentals before they'll think about challenging that threshold.

   Last week, Northern dressed cattle traded at mostly $353 to $355, which is 
$10.00 to $12.00 higher than the previous week's weighted average. Southern 
live cattle traded at mostly $230, which is $6.00 higher than the previous 
week's weighted average.

   Boxed beef prices are higher: choice up $1.20 ($358.64) and select up $2.49 
($346.71) with a movement of 71 loads (53.80 loads of choice, 4.39 loads of 
select, 4.93 loads of trim and 7.84 loads of ground beef).

FEEDER CATTLE:

   The feeder cattle complex has the same attitude this morning as the live 
cattle complex does, once again desiring to trade higher but not currently 
believing that the market has enough support to do so at the time being. 
January feeders are down $0.55 at $338.55, March feeders are down $0.17 at 
$333.90 and April feeders are down $0.30 at $332.57. The market will likely 
again closely follow the live cattle contracts and mimic its behavior this week.

LEAN HOGS:

   Although pork cutout values are higher this morning, the lean hog complex is 
trailing lower into Monday's noon hour as traders seem to be cautious to 
advance the market much more, given that late last week the complex rallied 
aggressively. February lean hogs are down $0.87 at $83.65, April lean hogs are 
down $0.75 at $88.77 and June lean hogs are down $0.24 at $100.80. If pork 
cutout values remain high throughout the week, then there's a chance that later 
in the week the complex could turn higher, but in the meantime, it seems as 
though traders are just wanting to get a feel for the market's demand.

   Hog prices are higher on the Daily Direct Morning Hog Report, up $2.07 with 
a weighted average price of $73.00, ranging from $71.50 to $74.00 on 1,331 head 
and a five-day rolling average of $71.84. Pork cutouts total 159.63 loads with 
132.84 loads of pork cuts and 26.79 loads of trim. Pork cutout values: up 
$1.22, $99.43.

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




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