DTN Midday Livestock Comments          02/03 11:10

   Strong Fundamental Support Continues to Push Livestock Contracts Higher 

   With strong underpinning fundamental support, the cattle contracts are 
trading fully higher into Tuesday's noon hour. 

Rick Kment
DTN Analyst

GENERAL COMMENTS:

   The livestock complex is higher into Tuesday's noon hour as traders remain 
encouraged by the outpour of fundamental support the market has seen in recent 
days. Still no cash cattle trade has developed and it's likely trade will be 
delayed until Thursday or Friday this week. March corn is up 2 1/4 cents per 
bushel and March soybean meal is down $1.70. The Dow Jones Industrial Average 
is down 126.17 points and NASDAQ is down 306.56 points.

LIVE CATTLE:

   The live cattle complex continues to move higher as traders have gained 
another level of confidence following last Friday's bullish Cattle Inventory 
report. February live cattle are up $0.20 at $238.37, April live cattle are up 
$0.05 at $239.57 and June live cattle are up $0.80 at $235.05. The market is 
pressuring its technical barriers as this is currently the highest price point 
traded at since last October. As long as fundamental support continues to 
remain robust, traders will likely remain supportive and push the contracts 
higher. But it's undeniable traders will need to see continued fundamental 
support. Following last week's strong trade in the fed cash cattle market, 
there's been no new business develop yet and it's most likely trade will be 
delayed until Thursday or Friday of this week. It is assumed prices will be 
higher again this week as supplies of market-ready cattle remain thin.

   Boxed beef prices are higher: choice up $2.66 ($370.87) and select up $2.85 
($367.76) with a movement of 56 loads (40.98 loads of choice, 3.08 loads of 
select, 4.94 loads of trim and 6.53 loads of ground beef).

FEEDER CATTLE:

   With encouragement from last week's bullish Cattle Inventory report, the 
stronger trade in the fed cash cattle market last week, and the live cattle 
contracts now trading higher, the feeder cattle complex is trading higher 
thanks to these support factors. March feeders are up $0.27 at $366.62, April 
feeders are up $0.47 at $364.65 and May feeders are $1.35 at $361.70. If the 
live cattle contracts happen to weaken, there's a strong chance the feeder 
cattle contracts will too.

LEAN HOGS:

   The projected CME Lean Hog Index is delayed from the source. Hog prices 
average $86.27 on the Daily Direct Morning Hog Report, with prices ranging from 
$80.00 to $88.00 on 2,461 head and a five-day rolling average of $85.12. Pork 
cutouts total 191.65 loads with 176.52 loads of pork cuts and 15.13 loads of 
trim. Pork cutout values: up $0.35, $96.05.

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




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