DTN Midday Livestock Comments 10/31 11:47

DTN Midday Livestock Comments 10/31 11:47 Live Cattle Futures Soften as October Futures Near Expiration October live cattle futures fade early Monday with traders backing out of the expiring contracts. The lack of support has limited support through the rest of live cattle markets, although trade volume has remained light through the complex. By Rick Kment DTN Analyst GENERAL COMMENTS: Light to moderate pressure is seen in live cattle futures as traders continue to focus on pressure in front-month October live cattle futures. October contracts expire Monday, leaving very few traders in the market, and most of the focus in December and February contracts. Feeder cattle and lean hog futures remain mixed in light but sluggish trade. Corn prices are higher in light trade. December corn futures are 2 cents higher. Stock markets are higher in light trade. The Dow Jones is 22 points higher while Nasdaq is up 11 points. LIVE CATTLE: Light to moderate pressure is seen in live cattle futures early Monday with October live cattle futures leading the complex lower as traders focus on exiting the market on the last trading session before expiration. With traders focusing on narrow contract spreads in all nearby futures, the lack of opportunity to build seasonality into the market remains a concern in the cattle market. Cash cattle activity is quiet Monday morning with show lists generally steady with last week. Asking prices and bids are undeveloped at this point. It may be midweek or later until active trade is seen on the cash market trade. Beef cut-outs at midday are higher $3.02 higher (select) and up $1.22 per cwt (choice) with light movement of 68 total loads reported (40 loads of choice cuts, 14 loads of select cuts, 0 load of trimmings, 14 loads of ground beef). FEEDER CATTLE: Early pressure in feeder cattle futures has eroded at midday with firm gains quickly developing as buyers have stepped back into the complex. Late month short covering activity is the main order of business seen during the late morning trade. This may bring about additional support through the end of the session, although trade volume is expected to remain extremely light, leaving traders to remain focused on the ability to move into November with potential firm gains. LEAN HOGS: Light trade continues to develop early Monday morning with follow-through buyer support stepping into December contracts. This has pushed prices above $47 per cwt as prices have moved to the highest level since September 26th. Additional support may spark additional commercial support through nearby contracts. Cash prices are lower on the National Direct morning cash hog report. The weighted average price fell $0.96 per cwt to $43.64 per cwt with the range from $42.00 to $45.50 on 4,615 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 159 loads selling with prices gaining $1.08 per cwt. Lean hog index for 10/26 is at $51.85 up $0.15 with a projected two-day index of $51.75 down $0.10. Rick Kment can be reached at rick.kment@dtn.com (ES) Copyright 2016 DTN/The Progressive Farmer. All rights reserved.