DTN Midday Livestock Comments 11/01 12:08

DTN Midday Livestock Comments 11/01 12:08 Cattle Futures Hold Triple-Digit Gains Sharp gains hold in cattle futures at midday despite aggressive pressure developing in lean hog futures. Sharp pressure in outside markets continue to keep traders focus on volatile market moves in most commodity markets Tuesday morning. By Rick Kment DTN Analyst GENERAL COMMENTS: Contract spreading between the cattle and hog markets appear to be the focus through the first trading session of November with triple-digit shifts seen in each respective market. The flurry of activity early during the session has slowed significantly, allowing cattle markets to back away from session highs as the session develops. Corn prices are lower in light trade. December corn futures are 6 cents lower. Stock markets are lower in light trade. The Dow Jones is 100 points lower while Nasdaq is down 36 points. LIVE CATTLE: Strong buyer support quickly swept into live cattle futures as nearby contracts posted triple-digit gains. The follow-through support helped to bring additional support, but lack of volume has pulled gains away from session highs at midday, threatening the ability to maintain support through the end of the session. Cash cattle markets remain quiet with bids and asking prices remain undeveloped Tuesday morning. It is likely at this point that active trade may not develop until midweek or later, and bids may not be seen until Wednesday or even later. Beef cut-outs at midday are higher $0.69 higher (select) and up $1.10 per cwt (choice) with light movement of 71 total loads reported (23 loads of choice cuts, 16 loads of select cuts, 9 load of trimmings, 22 loads of ground beef). FEEDER CATTLE: Feeder cattle futures have pulled away from session highs at midday, but continue to hold aggressive gains with nearby support maintaining $3 to $3.75 per cwt at midday. The potential to spark renewed interest after the first of the month has little to do with a change of market fundamentals and more to do with commercial trader interest redeveloping following the first of the month. November contracts have broken through $125 per cwt, trading at $125.45 per cwt at midday, creating the ability to spark additional upside market shifts through the next couple weeks. LEAN HOGS: Triple-digit pressure has developed through lean hog futures early Tuesday morning as traders wade into early November as the focus of trade activity has quickly moved to cattle markets and the sharp rally developing in both live cattle and feeder cattle markets. Tight trading ranges are seen through the morning with prices hovering from $1.17 to $1.35 per cwt lower while December contracts remain at $46.70 per cwt midday. Cash prices are unreported due to confidentiality on the Iowa Minnesota Direct morning cash hog report. The National Pork Plant Report reported 162 loads selling with prices gaining $1.32 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.