DTN Midday Livestock Comments 11/06 12:05

DTN Midday Livestock Comments 11/06 12:05 Cattle Futures Continue Lower Friday Morning Follow-through pressure developed through cattle futures Friday morning. The focus continues to be based on eroding beef values and sliding cash cattle prices. Hog futures are narrowly mixed but remain under pressure due to weak fundamentals. By Rick Kment DTN Analyst GENERAL COMMENTS: Live cattle futures have moved lower midday Friday as early morning support quickly eroded. The lack of support through the complex continues to add bearishness to the complex at the end of the week. Hog markets remain weak, even though contracts are narrowly mixed Friday morning. Corn prices are lower in light trade. December corn futures are 2-cent-per-bushel lower. Stock markets are lower in light trade. The Dow Jones is 45 points lower while Nasdaq is down 2 points. LIVE CATTLE: Mixed trade early in the session has moved lower as end-of-the-week follow-through pressure continues to develop. February contracts are leading the market lower with a $1.10-per-cwt loss, as traders continue to push prices lower at the end of the week. The ability to hold September lows over the next two weeks will become huge in keeping the cattle market the current range through the next couple of months. A move below $131.37 in December live cattle futures could spark further liquidation. Cash cattle bids are seen in both the North and South well below current asking prices of $138 to $140 in the South and $208 in the North. Bids are seen at $134 in the South and $204 in the North. There is expected to be light trade develop at the end of the day, but prices will likely fade through the end of the week given the overall softness in futures and beef values. Beef cut-outs at midday are lower, $1.27 lower (select) and down $2.94 per cwt (choice) with light movement of 68 total loads reported (29 loads of choice cuts, 15 loads of select cuts, 6 loads of trimmings, 19 loads of ground beef). FEEDER CATTLE: Feeder cattle futures have bounced higher and lower with a moderate trading range through the entire morning as traders continue to adjust positions ahead of the weekend after the volatile week of trade and aggressive market tumble. Front-month November contracts have fallen over $10 per cwt through the week. Traders Friday are trying to square positions where possible, although changing the tone of the market is not being done through the complex and likely to allow prices to shift lower before the end of the session as trade volume is light. LEAN HOGS: Lean hog futures have bounced higher and lower in a narrow range through the morning, although the trading range is limited through the end of the week given the recent pressure through the complex. December futures continue to hover on either side of $55 per cwt which continues to try to establish contract lows at the end of the week, but so far, it appears that traders are unable to find firm support in order to draw additional buyer activity into the complex at this point. If December contracts close below $55 per cwt, additional concerns are that further pressure will develop early next week. Cash prices are lower on the National Direct morning cash hog report. The weighted average price fell $1.11 per cwt to $54.25 per cwt with the range from $50.00 to $54.25 per cwt on 4,371 head reported sold. Cash prices are lower on the Iowa Minnesota Direct morning cash hog report. The weighted average price fell $1.32 per cwt to $53.57 per cwt with the range from $50.00 to $54.25 per cwt on 2,116 head reported sold. The National Pork Plant Report reported 175 loads selling with prices down $0.29 per cwt. Lean hog index for 11/4 is at $66.42 down 1.24, with a projected two-day index of $64.61, down 1.81. Rick Kment can be reached at rick.kment@dtn.com (BAS) Copyright 2015 DTN/The Progressive Farmer. All rights reserved.