DTN Midday Livestock Comments 10/15 12:23

DTN Midday Livestock Comments 10/15 12:23 Swift Losses Seen in Cattle Futures Thursday Morning Cattle Futures Pushed Sharply Lower Thursday morning with triple-digit losses seen in all contracts. Deferred feeder cattle contracts held $2 to $3 per cwt losses through most of the morning as traders quickly started to back away from the top of the market range seen earlier in the week. By Rick Kment DTN Analyst GENERAL COMMENTS: Cattle futures are holding moderate to strong losses at midday led by triple-digit losses in deferred feeder cattle futures. Both live cattle and feeder cattle futures appear to be setting trading ranges seen during early October, which could spark additional position taking at the end of the week. Corn prices are lower in light trade. December corn futures are 2 cents per bushel lower. Stock markets are higher in light trade. The Dow Jones is 88 points higher while Nasdaq is up 33 points. LIVE CATTLE: Moderate morning pressure has developed through live cattle futures Thursday morning as traders pulled back away from midweek support. The expectation that traders are setting a top in the first half of October could allow for additional choppiness to be seen through the entire cattle complex to develop over the next couple of trading sessions. Trade through the rest of the session is expected to remain in similar ranges. Cash cattle markets are still undeveloped at midday Thursday, but expected to see higher cash prices by the end of the week. A few asking prices have been seen in the south at $135. It has been a quiet week thus far and likely will be a fast and furious end of the week of activity which may be seen late Friday. The pullback in prices in futures markets is once again putting both sides on the defensive, creating concerns that moves last week may be the exception to the norm. Beef cut-outs at midday are higher, $0.84 higher (select) and up $0.28 per cwt (choice) with active movement of 101 total loads reported (60 loads of choice cuts, 28 loads of select cuts, zero loads of trimmings, 13 loads of ground beef). FEEDER CATTLE: Feeder cattle feeders are setting the pace for the lower-moving cattle market Thursday with the focus on chopping in a moderate range through the first half of the range. It seems that for the most part, the range may have been initially set, but there could be some additional room for growth if additional beef demand is seen through the fall. Deferred feeder cattle futures are hit hardest Thursday morning with losses of $2.50 per cwt seen at midday in spring and summer 2016 contracts. LEAN HOGS: Light to moderate pressure is seen through the lean hog complex as traders focus on December contracts taking over the top spot as October has gone off the board Wednesday. The expectation that cash market direction will continue to hold a premium to the front month December contract could help to sustain narrow losses through most of the nearby contracts through the end of the week, although readily available hog supplies may continue to keep pork moving into freezers at a rapid pace. Cash prices are lower on the National Direct morning cash hog report. The weighted average price fell $1.71 per cwt to $69.83 per cwt with the range from $65.00 to $72.00 per cwt on 3,172 head reported sold. Cash prices are lower on the Iowa Minnesota Direct morning cash hog report. The weighted average price fell $1.52 per cwt to $70.60 per cwt with the range from $65.00 to $72.00 per cwt on 951 head reported sold. The National Pork Plant Report reported 177 loads selling with prices down $1.36 per cwt. Lean hog index for 10/13 is at $74.94 up 0.09, with a projected two-day index of $74.98, up 0.04. Rick Kment can be reached at rick.kment@dtn.com (BAS) Copyright 2015 DTN/The Progressive Farmer. All rights reserved.