DTN Midday Livestock Comments 10/29 11:59

DTN Midday Livestock Comments 10/29 11:59 Widespread Pressure Seen In Livestock Futures Livestock futures turned lower Thursday as cattle futures are weaker with softness following traders taking positions following limit-higher trade midweek. Follow-through liquidation continues to be seen through the hog market is developing, putting even more pressure on December hog futures, testing $60 per cwt support levels. By Rick Kment DTN Analyst GENERAL COMMENTS: Moderate losses across all livestock markets continue to be seen Thursday morning as traders focus on position taking in the cattle complex after limit higher gains midweek. Hog futures continue to remain extremely weak given softness in both cash markets and pork values as front month December contracts struggle to stay hold $60 per cwt levels. 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 24 points lower while Nasdaq is down 11 points. LIVE CATTLE: Pressure continues to hold in deferred contracts despite the lack of overall support and volume seen in the market Thursday. Position taking following limit higher gains midweek is the main focus through the morning, with traders focusing on the potential of additional cash market shifts at the end of the week. The lack of support in beef values is limiting overall market support and creating a unsettled approach to the general market. Cash cattle activity remains sluggish with any additional trade through the week may be delayed until Friday. The light to moderate trade seen Tuesday may be it for the week in the South, although it would seem that more cattle may need to move across the floor. But at this point who knows if deals can get done. Bids are seen in the North at $210. Beef cut-outs at midday are mixed, $0.34 lower (select) and up $1.17 per cwt (choice) with light movement of 67 total loads reported (26 loads of choice cuts, 19 loads of select cuts, no loads of trimmings, 22 loads of ground beef). FEEDER CATTLE: Moderate to strong early pressure has run its course through the morning Tuesday with traders posting triple-digit losses during most of the morning. But at midday, light buyer support is starting to slowly develop back into the complex, with October futures holding a 5-cent-per-cwt gain. The October contract is essentially dead in the water at this point as contracts will expire early next week, but, if November futures will be able to close without sharp losses Thursday, additional buyer support may redevelop at the end of the week. LEAN HOGS: Lean hog futures continue to bounce lower, eroding through the morning as traders focus on the lack of fundamental support across the complex. Concern of traders will continue to remain weak and move through support levels through the early weeks of November may continue to add market pressure to not only nearby futures, but also the deferred contracts. December futures have moved off of session lows and above $60 per cwt, which seems to be bringing some short-term stability to the market for the moment, but the overall tone of the complex is still extremely weak. Cash prices are lower on the National Direct morning cash hog report. The weighted average price fell $0.55 per cwt to $63.65 per cwt with the range from $61.00 to $64.00 per cwt on 247 head reported sold. Cash prices are unreported on the Iowa Minnesota Direct morning cash hog report. The National Pork Plant Report reported 172 loads selling with prices down $0.31 per cwt. Lean hog index for 10/23 is at $73.63 down 0.49, with a projected two-day index of $73.29, down 0.34. Rick Kment can be reached at rick.kment@dtn.com (BAS) Copyright 2015 DTN/The Progressive Farmer. All rights reserved.