DTN Midday Livestock Comments 11/03 12:24

DTN Midday Livestock Comments 11/03 12:24 Pressure Continues Across Cattle Trade Spot cattle contracts led the livestock market lower Tuesday morning as traders focused on the lack of fundamental support early in the week. Early support in front-month lean hog futures quickly evaporated as increased volume entered the market, pushing hog markets lower once again. By Rick Kment DTN Analyst GENERAL COMMENTS: Widespread pressure developed through the entire livestock complex Tuesday morning with triple-digit losses holding in front-month live cattle and feeder cattle futures. The concern about these spot-month futures contracts is that recent market support and fundamental weakness may continue to develop through the upcoming holiday season andvcould erode longer-term market support through the rest of the year. 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 90 points higher while Nasdaq is up 19 points. LIVE CATTLE: December live cattle futures have pushed lower Tuesday morning, holding a $1.20 per cwt loss at midday as follow-through selling created additional pressure through the entire complex. The softness in beef values and inability to hold deferred contract support is weighing on prices. Cash cattle markets remain at a standstill with no bids or asking prices at this point in the week. It is likely trade will be pushed off until the last half of the week and may not occur until the very end of the week. Even though packers are expected to need cattle to fuel slaughter numbers, they have been creative in managing lately and may be able to limp by with light trade this week. Beef cut-outs at midday are lower, $0.81 lower (select) and down $0.61 per cwt (choice) with light movement of 61 total loads reported (27 loads of choice cuts, 10 loads of select cuts, 6 loads of trimmings, 17 loads of ground beef). FEEDER CATTLE: Feeder cattle futures have turned moderate losses into triple-digit front-month declines at midday as the lack of buyer support has developed into more apathy and created even more market concern. The jury is still out at this point as to whether nearby feeder cattle futures will be able to hover in the current trading range, or will be able to break out in either direction. At this point, a break lower would be the safer bet, given the previous market trend over the last couple of months. LEAN HOGS: Early movement in the December lean hog futures seemed to be creating a glimmer of hope that traders were looking at the bottom of the barrel and may start moving higher sooner rather than later. But that quickly passed as renewed pressure developed through the morning and selling pushed contracts even lower. At midday, futures held uniform losses between 80 and 90 cents per cwt. Cash prices are lower on the National Direct morning cash hog report. The weighted average price fell $1.23 per cwt to $58.04 per cwt with the range from $55.00 to $59.97 per cwt on 4,778 head reported sold. Cash prices are unreported due to confidentiality on the Iowa Minnesota Direct morning cash hog report. The National Pork Plant Report reported 229 loads selling with prices up $0.05 per cwt. Lean hog index for 10/30 is at $69.98 down 1.20, with a projected two-day index of $68.87, down 1.11. Rick Kment can be reached at rick.kment@dtn.com (BAS) Copyright 2015 DTN/The Progressive Farmer. All rights reserved.