DTN Midday Livestock Comments 11/03 12:02

DTN Midday Livestock Comments 11/03 12:02 Livestock Prices Post Sharp Losses Thursday Strong pressure quickly developed across the entire livestock market Thursday morning as feeder cattle futures led the market with triple-digit pressure reaching $2.70 per cwt in nearby contracts. Follow-through weakness is seen in all livestock markets, although volume remains light. By Rick Kment DTN Analyst GENERAL COMMENTS: Livestock futures have turned lower as traders are holding triple-digit losses in all contracts at midday. The lack of volume in the market as well as limited support late in the week in market fundamentals is creating cautiousness through most markets and allowing traders to step back from previous buying activity. Corn prices are lower in light trade. December corn futures are 1/4 cent lower. Stock markets are lower in light trade. The Dow Jones is 2 points lower while Nasdaq is down 24 points. LIVE CATTLE: Live cattle futures have continued to turn lower at midday with traders focusing on sharp triple-digit pressure in feeder cattle markets as well as general lack of buyer support moving into the complex. Nearby contracts have been limited to $1 per cwt losses with trade volume sluggish through most of the morning as traders remain focused on firming beef values and the potential to bring steady to firmer cattle trade back to the table by the end of the week. Cash cattle trade started to develop Thursday morning with sales reported in Kansas at $105 per cwt. This is steady with last week prices. Bids are seen in Texas at the same price level, but so far, no sales are reported. Activity is slow to develop in the North with scattered bids at $162 dressed and $103 live. Asking prices remain at $106 to $108 in the live and $168 to $170 dressed. Beef cut-outs at midday are higher $0.29 higher (select) and up $1.74 per cwt (choice) with light movement of 61 total loads reported (29 loads of choice cuts, 16 loads of select cuts, 5 load of trimmings, 10 loads of ground beef). FEEDER CATTLE: Sharp losses have once again redeveloped in feeder cattle futures as triple-digit pressure continues to be seen across the complex. Most contracts are holding $2 to $2.70 per cwt losses as traders quickly start to unwind gains seen earlier in the week. The lack of follow-through support seen early in the market and no new market direction from live cattle markets has left sellers unchecked as they quickly back away from the market Thursday. Even though pressure will likely hold through the rest of the session, the back-and-forth price moves through the morning could pull prices well off of current lows before closing bell. LEAN HOGS: Activity across the lean hog futures market continues to move back into the choppy, yo-yo type of pattern seen through the last couple of months. Losses Thursday have quickly backed away from midweek gains with little direction seen in the market or any fundamental or technical changes seen in the market. It is quite possible that the lean hog market may chop around in the current market range over the near future, as traders could move prices back and forth over the next couple of weeks. Cash prices are lower on the National Direct morning cash hog report. The weighted average price fell $0.99 per cwt to $42.85 per cwt with the range from $42.47 to $43.50 on 5,710 head reported sold. Cash prices are lower on the Iowa Minnesota Direct morning cash hog report. The weighted average price fell $0.80 per cwt to $43.11 per cwt with the range from $43.00 to $43.50 on 3,040 head reported sold. The National Pork Plant Report reported 200 loads selling with prices gaining $1.28 per cwt. Lean hog index for 11/1 is at $51.28 up $0.23 with a projected two-day index of $51.43 up $0.15. Rick Kment can be reached at rick.kment@dtn.com (ES) Copyright 2016 DTN/The Progressive Farmer. All rights reserved.