DTN Midday Livestock Comments 12/11 12:04

DTN Midday Livestock Comments 12/11 12:04 Nearby Live Cattle Futures Trickle Higher At Midday Light buyer support has resurfaced at midday through the cattle complex, helping to push nearby live cattle futures higher and narrow early feeder cattle losses. Trade volume through the rest of the session is expected to remain extremely light, which is likely to keep markets volatile until the end of the market day. Strong gains have redeveloped in nearby lean hog futures as traders focus on potential additional market support in cash hog and pork values through the end of the year. By Rick Kment DTN Analyst GENERAL COMMENTS: Live cattle futures have bounced higher at midday with nearby contracts posting light to moderate gains due to lack of additional movement in the market. Trade volume has remained extremely sluggish through the morning allowing for markets to move back and forth in a wide price range, with additional price shifts possible before the end of the session. Corn prices are lower in light trade. March corn futures are 2 cent lower. Stock markets are lower in light trade. The Dow Jones is 288 points lower while Nasdaq is down 97 points. LIVE CATTLE: Cattle futures have regained light gains in nearby futures contracts at midday after holding moderate losses through the entire morning. The lack of trade volume through the morning has allowed for the market shift and the ability for a potential late week price bounce. Even with a move higher at the end of the week, little will change to the bearishness of the overall market situation, but it could help to draw some buying support back into the complex early next week. Trade at midday is seen from 35 cents lower to 75 cents higher with front month December contracts leading the market higher. Cash cattle markets are expected to be finished for the week, with bids undeveloped Friday morning. There are some cattle priced at $121 in the South, but it is hard to find asking prices on the rest of cattle in show lists yet to be sold with feeders likely to opt to hold onto these lots waiting for better news next week. Beef cut-outs at midday are lower, $0.02 lower (select) and down $0.03 per cwt (choice) with moderate movement of 98 total loads reported (56 loads of choice cuts, 21 loads of select cuts, 5 load of trimmings, 15 loads of ground beef). FEEDER CATTLE: Triple digit losses seen during midmorning have eroded in nearby feeder cattle futures due to light volume, although the overall tone of the market has changed very little through midday. January contracts are holding a 30 cent per cwt loss, and a close anywhere near steady could help to bring some stability into the complex early next week. But there continues to be a long way to go until market settlement as the lightly traded Friday markets could quickly shift to previous morning losses in a moment's notice before closing bell. LEAN HOGS: December lean hog futures have slipped fractionally lower at midday due to lack of trade activity more than any other factor Friday morning while the rest of the complex continues to hold strong late morning gains. The firm support in February contracts continues to lead the entire market at this point, pushing prices above $60 per cwt, with the focus on increased market support through the next couple of weeks. Cash prices are lower on the National Direct morning cash hog report. The weighted average price fell $1.12 per cwt to $49.93 per cwt with the range from $45.50 to $52.00 per cwt on 2,160 head reported sold. Cash prices are unreported due to confidentiality on the Iowa Minnesota Direct morning cash hog report. The National Pork Plant Report reported 163 loads selling with prices up $0.94 per cwt. Lean hog index for 12/7 is at $56.32 up 0.10, with a projected two-day index of $56.66, up 0.34. Rick Kment can be reached at rick.kment@dtn.com (BAS) Copyright 2015 DTN/The Progressive Farmer. All rights reserved.