DTN Midday Livestock Comments 11/07 11:49

DTN Midday Livestock Comments 11/07 11:49 Cattle Trade Holding Triple-Digit Losses Strong pressure continues to hold across cattle futures as traders extend last week losses given the weakness developing across the entire complex. Strong morning pressure continues to develop in boxed beef values, leading to additional market pressure. By Rick Kment DTN Analyst GENERAL COMMENTS: Cattle futures continue to hold triple-digit losses at midday as follow-through pressure, which started to develop last week has continued to flood into the complex. The pressure in the market continues to keep cattle markets within the wide price range seen over the last month, although the overall tone of the market remains weak. Corn prices are lower in light trade. December corn futures are 3 cents lower. Stock markets are higher in light trade. The Dow Jones is 336 points higher while Nasdaq is up 115 points. LIVE CATTLE: Wide triple-digit market losses quickly redeveloped Monday morning, pushing front month December live cattle futures near $101 per cwt as traders continue to chop around within the wide trading range which has been established over the last month. Traders continue to focus on long term beef market demand, although the extent of the $9 per cwt trading range established during October is giving nearby live cattle futures an extremely wide path to wander without establishing any significant technical moves. Cash cattle activity remains quiet Monday morning with bids and offers still undeveloped. Show lists are mixed to generally smaller across the country although the moderate trade last week seems to have limited the amount of overall cattle moved although sales totals are not released at this point. Traders are looking for additional cash market support, but the inability for futures or beef cutout trade to stabilize is limiting this effort. Beef cut-outs at midday are lower $0.56 lower (select) and down $1.07 per cwt (choice) with light movement of 65 total loads reported (35 loads of choice cuts, 16 loads of select cuts, no load of trimmings, 14 loads of ground beef). FEEDER CATTLE: Aggressive follow through pressure has quickly redeveloped Monday morning, as follow through liquidation continues to develop in nearby contracts. November futures are leading the complex lower with a $2.52 per cwt loss, with the rest of the market holding $1.70 to $2 per cwt losses as traders not only focus on the aggressive downturn in the live cattle market, but concerns that previous support seen in October may soon be in danger. LEAN HOGS: Light trade volume has been evident through the morning Monday with traders focusing on the lack of follow through pressure in nearby contracts as incentive to spark early morning interest moving back into December and February contracts. Despite the firm support in pork values in the morning report, pressure has developed across the entire lean hog complex at midday, leaving nearby contracts with single-digit gains, while deferred futures continue to hold 10 to 50 cent losses. The overall pressure in the complex continues to be tied to the inability to draw long-term support back into the market. Cash prices are lower on the National Direct morning cash hog report. The weighted average price fell $1.04 per cwt to $41.57 per cwt with the range from $41.33 to $43.00 on 3,660 head reported sold. Cash prices are lower on the Iowa Minnesota Direct morning cash hog report. The weighted average price fell $0.07 per cwt to $42.64 per cwt with the range from $42.00 to $43.00 on 590 head reported sold. The National Pork Plant Report reported 212 loads selling with prices gaining $1.31 per cwt. Lean hog index for 11/3 is at $51.09 down $0.34 with a projected two-day index of $50.46 down $0.63. Rick Kment can be reached at rick.kment@dtn.com (ES) Copyright 2016 DTN/The Progressive Farmer. All rights reserved.