DTN Midday Livestock Comments 10/30 11:46

DTN Midday Livestock Comments 10/30 11:46 Feeder Cattle Futures Shifting Lower Friday Strong losses are starting to develop late Friday. The lack of buyer interest seen in the market follows a very volatile week of trade through the cattle complex, as traders continue to square positions at the end of the month. Lean hog futures are posting moderate gains at midday. By Rick Kment DTN Analyst GENERAL COMMENTS: Cattle futures have turned sharply lower as late-week losses have developed in nearby and deferred contracts. Not only are traders squaring positions at the end of Friday's session following a wild week of price shifts, but it ends a very volatile month of October. Hog futures have rebounded Friday, although trade volume remains light. Corn prices are higher in light trade. December corn futures are 3 cents per bushel higher. Stock markets are higher in light trade. The Dow Jones is 16 points higher while Nasdaq is up 2 points. LIVE CATTLE: Narrow-to-moderate losses were seen through much of the morning as traders focused on limited trade activity. The lack of support in beef values late in the week as well as no additional cash market news by midday has allowed for additional softness in futures trade. This has pushed December through June futures trade to post triple-digit losses, due to end-of-the-month position taking. Cash cattle markets are still untraded, although activity is likely done in the South for the week. Packers are still trying to get more business done through the North. Bids are seen at $210 per cwt, although at this point trade is still undeveloped. It is expected that trade may be able to be put in ink at $212 per cwt, which would be $4 per cwt higher than last week's average in the North. Overall cash traded numbers are expected to remain light for the week, leaving packers short bought going into the month of November. Beef cut-outs at midday are mixed, $0.33 higher (select) and down $1.74 per cwt (choice) with light movement of 58 total loads reported (36 loads of choice cuts, 12 loads of select cuts, two loads of trimmings, nine loads of ground beef). FEEDER CATTLE: Triple-digit losses have redeveloped through feeder cattle futures following renewed pressure in beef values Friday morning and increased concern of follow-through late-week market liquidation. Although additional long-term technical damage cannot be done at this point before the weekend and end-of-the-month break, there is expected to be some additional late-day positioning done before closing bell. The push lower could help to spark additional market support early next week with traders eyeing the month of November ahead of them to work with. LEAN HOGS: Moderate gains have developed during late-week trade as the focus through the complex continues to move to end-of-the-month positioning following widespread losses through the last couple of weeks. The most aggressive gains are seen in deferred contracts, although trade volume remains light in all contract months. Cash prices are lower on the National Direct morning cash hog report. The weighted average price fell $2.42 per cwt to $60.68 per cwt with the range from $58.00 to $63.00 per cwt on 839 head reported sold. Cash prices are lower on the Iowa Minnesota Direct morning cash hog report. The weighted average price fell $3.00 per cwt to $60.07 per cwt with the range from $58.00 to $63.00 per cwt on 340 head reported sold. The National Pork Plant Report reported 157 loads selling with prices down $0.17 per cwt. Lean hog index for 10/28 is at $72.13 down 0.62, with a projected two-day index of $71.18, down 0.95. Rick Kment can be reached at rick.kment@dtn.com (BAS) Copyright 2015 DTN/The Progressive Farmer. All rights reserved.