DTN Midday Livestock Comments 10/26 11:52

DTN Midday Livestock Comments 10/26 11:52 Cattle Futures Holding Losses Monday Sharp losses holding in cattle futures have held through the morning as triple-digit losses are creating the focus on increased concerns that demand is not continuing to grow as much as many had hoped. Lean hog futures have posted moderate gains, but trade volume remains light. By Rick Kment DTN Analyst GENERAL COMMENTS: Cattle futures remain under pressure as traders are focusing on increased triple-digit pressure based on limited buyer activity. The concern surrounding lackluster demand for beef and pork continues to limit overall movement of product and overall trade activity. Corn prices are higher in light trade. December corn futures are 5 cents per bushel higher. Stock markets are mixed in light trade. The Dow Jones is 30 points lower while Nasdaq is up 5 points. LIVE CATTLE: Strong triple-digit losses continue to develop as commercial pressure is holding in October live cattle futures. This is holding October contracts under $140 per cwt with a $1.67 per cwt loss as other nearby contracts remain $1 per cwt lower. Concern of additional follow through selling pressure continues to drive traders into nearby contracts, which may limit buyer interest during the last week of October. Cash cattle market activity is quiet with showlists still undeveloped in the North and mixed in the South. No asking prices have yet been seen in the South at this point, but expected to be seen later in the day. Beef cut-outs at midday are mixed, $0.22 lower (select) and up $0.01 per cwt (choice) with light movement of 68 total loads reported (41 loads of choice cuts, 10 loads of select cuts, no loads of trimmings, 16 loads of ground beef). FEEDER CATTLE: Feeder cattle futures continue to hold triple-digit losses at midday, even though losses have fallen significantly from session lows, and are now seen at just $1 per cwt lower. The lack of follow-through pressure though the entire complex as light volume is seen in both live cattle and feed cattle markets is creating additional market support. It is unlikely that markets will move higher through the trading day, as deferred markets remain under pressure, but the tone of the market remains less bearish as the day continues. LEAN HOGS: Moderate gains are holding in nearby December and February contracts while narrow gains have slowly developed through the rest of the complex through the morning. Although light short covering activity seems to be the main agenda of the morning, the main focus of trade activity seems to be focusing on trade interest in front month December contracts. Support has is seen at $$63.50 per cwt, which may help to establish a wide trading range at which traders way help to rebuild additional support over the next several trading sessions. Cash prices are unreported due to confidentiality on the National Direct morning cash hog report. Cash prices are unreported due to confidentiality on the Iowa Minnesota Direct morning cash hog report. The National Pork Plant Report reported 163 loads selling with prices up $1.05 per cwt. Lean hog index for 10/21 is at $74.27 down 0.05, with a projected two-day index of $74.12, down 0.15. Rick Kment can be reached at rick.kment@dtn.com (BAS) Copyright 2015 DTN/The Progressive Farmer. All rights reserved.