DTN Midday Livestock Comments 11/20 11:40

DTN Midday Livestock Comments 11/20 11:40 Feeder Cattle Gains Lead Cattle Complex Higher Strong buyer support redeveloped Friday morning across the feeder cattle complex, as traders expand gains through the end of the week. This is sparking some additional pre-report positioning for the cattle on feed report which will be released Friday afternoon. By Rick Kment DTN Analyst GENERAL COMMENTS: Live cattle futures are holding narrow to moderate gains at midday, while most of the emphasis through the morning has moved to the strong follow through support of triple-digit gains in both feeder cattle and lean hog futures. Strong end of the week buyer support in nearby feeder cattle and lean hog contracts has drawn additional buyer activity to the complex, sparking strong buyer support ahead of the weekend break. Corn prices are lower in light trade. December corn futures are 1 cent lower in front-month December contracts. Stock markets are higher in light trade. The Dow Jones is 103 points higher while Nasdaq is up 25 points. LIVE CATTLE: Given the wide ranging back and forth seen in live cattle futures and the entire livestock complex through the week, live cattle futures have remained relatively calm through the morning with moderate gains holding, due to generally light trade seen at midday. December and February contracts are holding 35-cent-per-cwt gains at midday as traders seem content holding $130 price levels in December contracts into the weekend, and into next week. Cash cattle activity is still yet to develop for the week except for just 500 head of cattle reported sold at $195 per cwt in Nebraska, although packer interest is starting to improve with bids seen at $126 to $127 in the South and $195 in the North. Asking prices are still seen in the South at $131 and higher. Beef cut-outs at midday are lower, $0.35 lower (select) and down $0.06 per cwt (choice) with light movement of 68 total loads reported (34 loads of choice cuts, 16 loads of select cuts, 7 loads of trimmings, 11 loads of ground beef). FEEDER CATTLE: Strong buyer support continues to steadily develop through the feeder cattle futures market midday Friday even though trade volume has remained moderate at best during most of the morning. Contracts have fallen well off of early session highs, as traders are starting adjust positions ahead of the cattle on feed report which will be released Friday afternoon, but choppy trade may continue to be seen in the next couple hours before market settlement. LEAN HOGS: Strong late-week buyer support continues to quickly flood back into nearby lean hog futures contracts, moving December contracts above $57 per cwt levels and to two-week highs. Gains are reaching $1.85 per cwt at midday with the potential for additional late week support to develop and push additional distance between early week lows, which could be used as a marker for the turnaround point for the lean hog complex in the month of November. Cash prices are unreported on the National Direct morning cash hog report. Cash prices are unreported due to confidentiality on the Iowa Minnesota Direct morning cash hog report. The National Pork Plant Report reported 145 loads selling with prices down $0.39 per cwt. Lean hog index for 11/18 is at $55.87 down 0.17, with a projected two-day index of $55.52, down 0.35. Rick Kment can be reached at rick.kment@dtn.com (BAS) Copyright 2015 DTN/The Progressive Farmer. All rights reserved.