DTN Midday Livestock Comments 11/09 11:44

DTN Midday Livestock Comments 11/09 11:44 Mixed Trade Holding in Live Cattle Futures Despite Light Volume Narrow to moderate trading ranges are holding across the livestock market as traders continue to focus on general market stability during the day following the election surprise that led to overnight financial market pressure. Livestock futures remain mixed in light trade volume. By Rick Kment DTN Analyst GENERAL COMMENTS: Light trade is seen through livestock futures as mixed price levels continue to hold across the complex. Lean hog futures remain focused on the uncertainty of follow-through demand support through the summer of 2017, as overall export markets will continue to be under the microscope with the new administration. Cattle futures have backed away from early support, but remain mixed in a narrow range. Corn prices are lower following the USDA report in light trade. December corn futures are 11 cents lower. Stock markets are higher in light trade. The Dow Jones is 168 points higher while Nasdaq is up 34 points. LIVE CATTLE: Early gains developed through live cattle trade as traders quickly looked past election results and moved back into the cattle complex, focusing on firming buyer support and potential additional gains through the middle of the week. But light trade has limited the movement, allowing prices to remain limited in a narrowly mixed price range at midday. The lack of support in beef values continues to create questions of just how much support can redevelop through the end of the week. Cash cattle activity remains quiet early Wednesday morning with asking prices of $101 per cwt developing in Texas through the Morning. Fed Cattle Exchange Auction is taking place Wednesday morning with early reports of sales reported at $103 to $104 per cwt on the auction, but sale summaries have not been posted at this time. Beef cut-outs at midday are lower $1.76 lower (select) and down $0.01 per cwt (choice) with active movement of 103 total loads reported (50 loads of choice cuts, 32 loads of select cuts, no loads of trimmings, 21 loads of ground beef). FEEDER CATTLE: Firm gains are holding in light trade as traders remain focused on lack of widespread movement in outside markets following the election. This is allowing traders to move back to a more fundamental and technical view of the market, breaking away from some of the long-term fears that have held over traders over the last several months as to how election results would impact market direction and commodity prices. Feeder cattle futures are holding 15 to 60 cent gains, although trade volume remains light. LEAN HOGS: Early support in the lean hog futures held lean hog trade mixed through the first couple hours of trade, but markets eased at midday following cash market pressure and potential concerns that long term softness may develop through supply issues if trade deals are tampered with and export trade is limited. This could continue to erode support in summer 2017 contract months, which has been driving the renewed lean hog support over the last three weeks. Cash prices are lower on the National Direct morning cash hog report. The weighted average price fell $0.77 per cwt to $41.23 per cwt with the range from $40.00 to $42.50 on 7,645 head reported sold. Cash prices are lower on the Iowa Minnesota Direct morning cash hog report. The weighted average price fell $1.09 per cwt to $40.96 per cwt with the range from $40.00 to $42.00 on 3,255 head reported sold. The National Pork Plant Report reported 229 loads selling with prices adding $0.08 per cwt. Lean hog index for 11/7 is at $50.14 down $0.32 with a projected two-day index of $49.80 down $0.34. Rick Kment can be reached at rick.kment@dtn.com (ES) Copyright 2016 DTN/The Progressive Farmer. All rights reserved.