DTN Midday Livestock Comments 10/07 11:59

DTN Midday Livestock Comments 10/07 11:59 Livestock Futures Mixed in Light Trade Friday Morning Inactivity early Friday has kept traders on the sidelines in most livestock contracts. This is keeping most price levels within a narrow trading range, while the market remains generally directionless. Activity through the rest of the session is likely to remain quiet in both cattle and hog markets. By Rick Kment DTN Analyst GENERAL COMMENTS: Narrow trade is holding across all livestock futures with the complex limited in both cattle and hog markets. The inability for traders to focus on directional moves through the end of the week not only limits the ability to add volume to the complex, but causes doubt concerning the market direction through the upcoming weeks. Corn prices are higher in light trade. December corn futures are 2 cents higher per bushel. Stock markets are lower in light trade. The Dow Jones is 87 points lower while Nasdaq is down 34 points. LIVE CATTLE: Narrow trading ranges are holding live cattle futures in a very limited market range as traders are unwilling to venture away from previous market shifts at this point. Front month October contracts are posting 45 cent losses, holding prices near $102 per cwt, while narrow gains are hanging on through the rest of the nearby contracts. The lack of support in the market remains limited to the narrow moves in beef values and inability to develop cash trade during morning activity. Cash cattle activity Friday morning has been as lackluster and lifeless as the rest of the market with asking prices still holding near $104 in the South and $158 to $160 in the North, and bids undeveloped through the morning as packers seem to show little interest at this point. Cash cattle trade developed Wednesday and Thursday with lower money than a week ago as moderate numbers of cattle were traded, but it is uncertain if this is enough to get packers by for the week. Some clean up trade may develop, but given the lack of interest shown so far this morning both sides may have thrown in the towel for the week, hoping to get more traction once Monday rolls around. Beef cut-outs at midday are mixed $0.14 lower (select) and up $0.04 per cwt (choice) with light movement of 78 total loads reported (34 loads of choice cuts, 26 loads of select cuts, 7 loads of trimmings, 10 loads of ground beef). FEEDER CATTLE: Feeder cattle futures continue to wander in a narrow trading range Friday morning with little direction. The wide price shifts seen over the last two weeks have left traders seemingly out of breath and grasping for market stability. It is uncertain at this point if this lack of movement is the start of a more stable market trend, or just lack of interest shown at the end of the week while traders try to decide what their next move will be. Single digit price moves are seen in nearby contracts, that may continue through the end of the week. LEAN HOGS: Strong gains continue to develop in front-month lean hog futures trade with October contracts moving to triple-digit gains and holding prices near $51.50 per cwt. The ability to hold price levels above $51 per cwt after hitting contract lows near $48 per cwt just two days prior is sparking firm market support through the entire complex, and could help to rebuild long term market interest over the next week. October futures will soon expire, but if solid footing can be established before that point, additional momentum can quickly develop across the complex. Cash prices are lower on the National Direct morning cash hog report. The weighted average price fell $1.10 per cwt to $45.22 per cwt with the range from $43.00 to $46.50 on 2,207 head reported sold. Cash prices are lower on the Iowa Minnesota Direct morning cash hog report. The weighted average price fell $1.28 per cwt to $45.50 per cwt with the range from $45.00 to $46.50 on 542 head reported sold. The National Pork Plant Report reported 123 loads selling with prices falling $0.03 per cwt. Lean hog index for 10/4 is at $54.85 down 0.63 with a projected two-day index of $54.36 down 0.49. Rick Kment can be reached at rick.kment@dtn.com (ES) Copyright 2016 DTN/The Progressive Farmer. All rights reserved.