DTN Midday Livestock Comments

GENERAL COMMENTS:

Aggressive triple-digit losses in cattle markets focusing on end-of-week liquidation has created live cattle futures at- or near-limit losses at midday. This is likely to keep markets bearish through the end of the session. Corn prices are higher in light trade. December corn futures are 3 cents per bushel higher. Stock markets are lower in light trade. The Dow Jones is 100 points lower while Nasdaq is down 49 points.

LIVE CATTLE:

Sharp triple-digit losses have been the focus across live cattle trade during the morning with nearby contracts seen at or near limit losses through the last half of the morning. Widespread market pressure is seen across the complex with traders quickly erasing previous gains seen in the week. This sets the tone for potential volatility through the month of December as traders remain stuck between fundamental moves and longer-term technical direction. Cash cattle markets are sluggish with light trade seen similar to prices paid Thursday afternoon. Live cattle have been sold at $120 with $190 seen dressed. There continue to be bids seen through most areas, although it is uncertain how much additional trade will develop given the pressure in futures markets. Beef cut-outs at midday are mixed, $0.63 lower (select) and up $1.51 per cwt (choice) with active movement of 93 total loads reported (49 loads of choice cuts, 9 loads of select cuts, 9 loads of trimmings, 25 loads of ground beef).

FEEDER CATTLE:

Sharp losses continue to be seen in feeder cattle trade as traders in the entire cattle market are focusing on overall lack of support across the complex. This may add to even more pressure through the end of the session and early next week.

LEAN HOGS:

Mixed trade is seen through the lean hog futures complex with nearby support holding based on firming fundamentals. But overall lack of support in the cattle market is putting pressure on lightly traded deferred lean hog futures. This may continue to weaken the market price through the end of the session. Cash prices are lower on the National Direct morning cash hog report. The weighted average price fell $0.22 at $58.64 per cwt with the range from $56.00 to $60.00 on 5,364 head reported sold. Cash prices are lower on the Iowa/Minnesota Direct morning cash hog report. The weighted average price fell $0.46 at $59.41 per cwt with the range from $54.00 to $60.00 on 355 head reported sold. The National Pork Plant Report posted 170 loads selling with carcass values gaining $0.14 per cwt. Lean hog index for 11/29 is at $62.99 up $0.03 with a projected two-day index of $63.26, up $0.27.

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

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