DTN Midday Livestock Comments 11/02 11:55

DTN Midday Livestock Comments 11/02 11:55 Narrow Gains Hold in Cattle Futures Light support trickled into the cattle complex Wednesday morning with futures showing narrow nearby gains. The lack of strong follow through support midweek is limiting market momentum, although traders continue to hold gains seen Tuesday as they look for firming fundamental news. By Rick Kment DTN Analyst GENERAL COMMENTS: Light to moderate gains have developed Wednesday morning in cattle and hog futures with initial mixed trade giving way to light cattle support although trader support remains sluggish following the triple digit market surge which developed Tuesday. Firm gains are holding in nearby lean hog futures as a reactionary measure to Tuesday's market slide. Corn prices are lower in light trade. December corn futures are 3 cents lower. Stock markets are lower in light trade. The Dow Jones is 20 points lower while Nasdaq is down 24 points. LIVE CATTLE: Live cattle futures remain quiet Wednesday morning with futures moving away from early mixed moves and holding slight gains at midday. The strong support in beef values is helping to bring light buyer interest back into the market, but the limited volume and lack of additional market direction expected through the rest of the session is likely to allow prices to wander within the narrow range through the rest of the day. December futures are holding a 10 cent gain, holding at $105.60 per cwt. Cash cattle trade developed Wednesday morning on the Fed Cattle Exchange Auction with nearly 3,500 head sold. Prices ranged from $104 to $106 per cwt. This would be steady to $1 higher from last week's price levels. The significant amount of cattle still left unsold may indicate feeder's higher expectations given the strong market surge over the last couple of days. Active trade through the rest of cattle country may be delayed until sometime Thursday or Friday as bids remain generally light around the country with only a few $102 bids developing in the South, while cattle are being offered at $108 to $110 per cwt. Beef cut-outs at midday are higher $1.38 higher (select) and up $2.00 per cwt (choice) with light movement of 75 total loads reported (34 loads of choice cuts, 18 loads of select cuts, 7 load of trimmings, 16 loads of ground beef). FEEDER CATTLE: Light gains have slowly developed midweek, as trades have struggled to find support despite the strong rally Tuesday. November contracts are holding a 55 cent per cwt gain, holding prices at $126.75 per cwt. Spot-month November contracts are hitting short term resistance levels of $127 per cwt, although there continues to be some additional underlying concern in the market surrounding the ability to sustain buyer support through the end of November. LEAN HOGS: Firm support continues to hold Wednesday morning as traders remain focused on squaring positions following the swift market adjustment Tuesday. Nearby contracts continue to hold gains of 80 to 90 cents per cwt, although light trade volume is seen across the market with very little additional direction expected through the rest of the session. Deferred contracts remain limited with narrow gains holding, but the inability to move away from stable market levels seem to keep traders quiet at midday. Cash prices are lower on the National Direct morning cash hog report. The weighted average price fell $0.66 per cwt to $43.69 per cwt with the range from $42.50 to $44.50 on 9,950 head reported sold. Cash prices are lower on the Iowa Minnesota Direct morning cash hog report. The weighted average price fell $0.85 per cwt to $43.78 per cwt with the range from $42.50 to $44.00 on 4,490 head reported sold. The National Pork Plant Report reported 212 loads selling with prices falling $0.49 per cwt. Lean hog index for 10/29 is at $51.05 down $0.17 with a projected two-day index of $51.28 up $0.23. Rick Kment can be reached at rick.kment@dtn.com (ES) Copyright 2016 DTN/The Progressive Farmer. All rights reserved.