DTN Midday Livestock Comments 12/03 12:12

DTN Midday Livestock Comments 12/03 12:12 Live Cattle Futures Tumble at Midmorning Sharp losses redeveloped in live cattle futures Thursday. This push in futures prices has sparked increased cash selling to develop, leaving lower prices and concern of further weakness. By Rick Kment DTN Analyst GENERAL COMMENTS: Livestock futures are sharply lower in the cattle contracts with live cattle holding near limit losses in December contracts. Corn prices are higher in light trade. December corn futures are 6 cents higher. Stock markets are lower in light trade. The Dow Jones is 47 points lower while the Nasdaq is down 23 points. LIVE CATTLE: Live cattle futures have backed away from limit losses in December futures with contracts holding $3.60 per cwt losses at midday. Deferred contracts are trading $1 to $2 per cwt lower while traders are looking for additional market support. Cash cattle activity has developed with trade seen in the North at $195, steady with Wednesday, and $124 to $125 in the South. Some additional trade is expected, but the price range may have been set. Beef cut-outs at midday are higher, $1.01 higher (select) and up $1.38 per cwt (choice) with light movement of 74 total loads reported (38 loads of choice cuts, 17 loads of select cuts, no loads of trimmings, 20 loads of ground beef). FEEDER CATTLE: Feeder cattle futures have moderated at late morning as traders are looking for additional support even though it seems buyers find it hard to step back into the market later in the day. January futures are holding $1.52 per cwt losses while other contracts are trading $1.20 to $1.40 per cwt lower. Trade may remain sluggish through the end of the session. LEAN HOGS: Light to moderate pressure has developed through the morning Thursday as the cattle complex pressured the hog contracts. Early mixed trade in nearby lean hog futures was quickly dashed as live cattle futures turned to the expanded trading limits with traders uncertain of just how much support can hold. Trade is expected to remain sluggish through the rest of the complex, although limited trading ranges are likely to be seen through the rest of the session. Cash prices are lower on the National Direct morning cash hog report. The weighted average price fell $1.70 per cwt to $50.52 per cwt with the range from $50.01 to $53.00 per cwt on 2,866 head reported sold. Cash prices are lower on the Iowa/Minnesota Direct morning cash hog report. The weighted average price fell $0.69 per cwt to $52.50 per cwt with the range from $51.00 to $53.00 per cwt on 526 head reported sold. The National Pork Plant Report reported 221 loads selling with prices up $1.27 per cwt. Lean hog index for 12/1 is at $55.81 up 0.32, with a projected two-day index of $56.13, up 0.32. Rick Kment can be reached at rick.kment@dtn.com (BAS) Copyright 2015 DTN/The Progressive Farmer. All rights reserved.