DTN Midday Livestock Comments 11/16 12:11

DTN Midday Livestock Comments 11/16 12:11 Futures Post Limit Losses Monday Limit losses hold through cattle and hog futures Monday morning as traders quickly return to the complex with weaker expectations for the week and rest of the month. Trade volume has remained quiet due to locked trade by early limit moves. By Rick Kment DTN Analyst GENERAL COMMENTS: Cattle futures are locked in limit-down trade through the morning as traders returned from the weekend. There is expected to be some additional pressure developing through the lean hog complex. Widespread losses are seen through the rest of the complex. Corn prices are mixed in light trade. December corn futures are 1 cent per bushel lower. Stock markets are higher in light trade. The Dow Jones is 99 points higher while Nasdaq is up 9 points. LIVE CATTLE: Live cattle futures continue to remain stuck in a bearish market slide as traders are locked in limit-down trade in all nearby contracts through June 2016 contract months. The focus through the market remains on weakness in cash cattle prices as well as lack of underlying beef market support. This may continue to create widespread futures market pressure early in the week, allowing for prices to fall. Cash cattle markets are at a standstill early in the week given the market slide late last week and the sharp limit down pressure in futures trade Monday morning. Bids are understandably unavailable and asking prices are nowhere to be found. This is expected to continue through the first half of the week if the trend from the last several weeks holds. It is uncertain just how much interest will be seen early in the week, and if this will develop into increased end of the week activity. Beef cut-outs at midday are mixed, $0.81 lower (select) and up $0.47 per cwt (choice) with light movement of 92 total loads reported (38 loads of choice cuts, 13 loads of select cuts, 6 loads of trimmings, 34 loads of ground beef). FEEDER CATTLE: Feeder cattle futures didn't take long to follow the live cattle futures market to limit losses Monday morning in most nearby contracts. Front-month November futures continue to lag the rest of the complex with losses still holding losses at $3 per cwt lower as light trade remains limited through the complex. It is unlikely that anything will change before the end of the complex, as traders will continue to focus on lack of support through the beef complex. LEAN HOGS: Lean hog futures started out slightly lower, but the bearishness through the rest of the livestock complex was too much to overcome as nearby lean hog have moved to limit losses at midday with prices of $51.90 per cwt. The break below previous support levels of $53.50 per cwt seen last week has brought in another round of aggressive liquidation. Even though additional pressure cannot develop Monday, a break below $50 per cwt through the week could create additional wide unraveling of the pork complex going into the end of the year. Cash prices are lower on the National Direct morning cash hog report. The weighted average price fell $1.02 per cwt to $50.06 per cwt with the range from $48.00 to $51.50 per cwt on 3,998 head reported sold. Cash prices are lower on the Iowa Minnesota Direct morning cash hog report. The weighted average price fell $0.67 per cwt to $51.06 per cwt with the range from $50.00 to $51.50 per cwt on 403 head reported sold. The National Pork Plant Report reported 212 loads selling with prices up $0.84 per cwt. Lean hog index for 11/12 is at $57.93 down .96, with a projected two-day index of $56.98, down .95. Rick Kment can be reached at rick.kment@dtn.com (BAS) Copyright 2015 DTN/The Progressive Farmer. All rights reserved.