DTN Midday Livestock Comments 11/10 11:57

DTN Midday Livestock Comments 11/10 11:57 Cattle Futures Remain Locked in Bearish Woodshed at Midday Live and feeder contracts are struggling once again with triple-digit losses near the noon hour, weighed by long liquidation, technical selling, and beef demand worries. For the most part, lean hog futures are moderately lower at this time, falling from early-session highs. By John Harrington DTN Analyst GENERAL COMMENTS: The cash cattle market is not tested at midday with either bids or asking prices well defined. The ugly turmoil on the board is now doubt causing great confusion on both sides. Significant business could easily be delayed until Thursday or Friday. According to the midday report, the national hog base is not tested due to rules of confidentiality. Corn futures are under pressure (i.e., of 6-7 cents) following the release of bearish production reports (e.g., corn yield was raised to 169.3 bpa, boosted total production to 13.65 billion bushels, about 100 million above the average trade guess). U.S. stocks are trading mostly lower as investors continue to weigh the likelihood of a December rate hike. The Dow is 25 points lower with the Nasdaq off 26. LIVE CATTLE: Once again, the live market open mixed but the token stability didn't last long. Extremely negative psychology quickly resumed its attack upon prices. Contracts near midday are generally 160 to 300 points lower, hammered by another wave of technical selling and long liquidation. Beef cut-outs are moderately higher at midday, up .46 (choice, $216.91) to .75 (select, $207.44) with light box movement (31 loads of choice cuts, 14 loads of select cuts, 5 loads of trimmings, 24 loads of coarse grinds). FEEDER CATTLE: Unfortunately, the story here is similarly bearish. Yet the whiplash seen so far this morning has been even greater. Indeed, feeders opened with decent gains thanks to short covering and profit taking. But this balloon too quickly deflated. Most contracts are not in the red by 207 to 322 with spot November now 450 points below its early high. LEAN HOGS: Lean hog issues are mostly lower near midday, pressured by spillover selling from the cattle complex. Yet the damage is far less, minimized by short covering and some signs of stabilizing pork demand. Spot December is holding some higher, supported by the premium status of the cash index. Carcass value is lower according to the midday report, pressured by softer demand for loins (off $2.77) and bellies (off $6.05). Pork cut-out: $77.15, up $1.87. CME cash lean 11/06: 62.55, off 2.06 (DTN Projected lean index for 11/09: NA). (BAS) Copyright 2015 DTN/The Progressive Farmer. All rights reserved.