DTN Midday Livestock Comments

GENERAL COMMENTS:

Livestock futures remain mixed in a narrow range with light to moderate gains holding in cattle trade, despite the lack of direction in cash or beef values through the day Friday. Hog markets are under firm pressure as traders are pulling back from early week support seen in the complex. Corn prices are higher in light trade. December corn futures are 1 cent higher. Stock markets are mixed in light trade. The Dow Jones is 22 points lower while Nasdaq is up 2 points.

LIVE CATTLE:

Early support in live cattle futures has eroded as the day has continued with nearby futures holding narrow price support through the end of the morning. This has helped to keep traders interested in the market, but still extremely cautious headed into the end of the week. The overall lack of direction in beef values and sluggish trade activity through the morning is likely to keep prices within a narrow range through the end of the session. Cash cattle markets remain quiet midmorning with a bids developing in Nebraska at $168 to $170 in the North. Asking prices are seen at $110 to $112 live basis and $174 and higher dressed, but feeders are likely to focus trade through the afternoon Friday. Beef cut-outs at midday are mixed, $0.63 lower (select) and up $0.14 per cwt (choice) with light movement of 78 total loads reported (29 loads of choice cuts, 14 loads of select cuts, 12 loads of trimmings, 23 loads of ground beef).

FEEDER CATTLE:

Narrow gains continue to hold in feeder cattle futures midday Friday morning with very light activity seen through all livestock markets. Early support has slowly eroded as traders continue to look for direction from cash cattle trade that is yet to develop Friday. This is keeping front month feeder cattle futures with limited gains of 17 cents per cwt at midday, although other nearby contracts are holding gains of 30 to 50 cent gains.

LEAN HOGS:

Firm pressure has developed through lean hog futures with traders focusing on the lack of support in cash hog markets during the day as well as overall sluggish market interest seen through the end of the week. The inability to hold gains seen during the week Friday is more a focus on light trade activity rather than any long term shift in market direction. Cash prices are lower on the National Direct morning cash hog report. The weighted average price fell $1.41 at $50.73 per cwt with the range from $50.00 to $52.00 on 2,372 head reported sold. Cash prices unreported due to confidentiality on the Iowa/Minnesota Direct morning cash hog report. The National Pork Plant Report reported 136 loads selling with prices falling $0.19 per cwt. Lean hog index for 10/4 is at $55.33 up $0.36 with a projected two-day index of $55.77, up 0.44.

Rick Kment can be reached at rick.kment@dtn.com

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