DTN Midday Livestock Comments 11/10 11:50

DTN Midday Livestock Comments 11/10 11:50 Mixed Trade Holding in Live Cattle Futures Despite Light Volume Buyer support quickly redeveloped through nearby lean hog futures trade late Thursday morning on fundamental support from higher pork values in the morning cutout report. Cattle trade remains sluggish, although early gains continue to hold with nearby live cattle contracts holding prices nearly $1 per cwt higher at midday. By Rick Kment DTN Analyst GENERAL COMMENTS: Moderate to firm gains are seen through livestock futures at midday with traders holding strong gains near $1 per cwt higher in live cattle trade, while lean hog futures have rebounded from early morning pressure. Strong buyer support is seen in nearby lean hog futures following increased pork prices on the morning cutout report. Corn prices are higher light trade. December corn futures are 1 cent higher. Stock markets are mixed in light trade. The Dow Jones is 117 points higher while Nasdaq is down 68 points. LIVE CATTLE: Firm gains have once again redeveloped in nearby live cattle futures as December live cattle contracts have pushed above $104 per cwt in light morning trade. Even though nearby contracts have held gains at or near $1 per cwt through much of the morning, the overall market status has not changed. Nearby contracts are still nearly $1 per cwt under resistance levels, and the lack of activity appears to be unable to test these levels at this point. Cash cattle markets remain extremely quiet Thursday morning with just a few token bids developing in the North and South. Kansas bids are seen at $101 per cwt while Nebraska early bids are seen at $160 dressed basis. Asking prices remain at $106 in the South and $165 in the North, but still may not be able to spark trade until sometime Friday. The movement of nearly 11,000 head of cattle on the Fed Cattle exchange Wednesday morning has to this point been unable to reprime the well and draw additional interest back into feedlot country. Beef cut-outs at midday are lower $92 lower (select) and down $0.13 per cwt (choice) with light movement of 49 total loads reported (26 loads of choice cuts, 19 loads of select cuts, no loads of trimmings, 3 loads of ground beef). FEEDER CATTLE: Firm gains have held through Thursday morning in the feeder cattle complex as traders focus on the strong renewed buyer support developing in live cattle futures market. Commercial support is seen across the entire feeder cattle market, with the most aggressive support seen in summer 2017 contracts. These 60 to 90 cent market shifts seen through the morning are unable to establish any new direction in the market as traders continue to shift prices higher and lower within the previous market range. LEAN HOGS: Lean hog futures have bounced off of session lows set during midmorning as traders pushed front month December contracts below $46 per cwt for a limited amount of time through the trading period. But the development of firming pork values in the morning cutout report and narrow gains in the Iowa cash hog market report is helping to draw additional buyer interest back into the market, especially in nearby contract months. December futures are leading the complex higher with a 60 cent per cwt rally, as prices are holding above $47 per cwt. The ability to keep markets steady to higher at closing bell could spark additional late week buying momentum through all contracts. Cash prices are lower on the National Direct morning cash hog report. The weighted average price fell $0.17 per cwt to $41.22 per cwt with the range from $40.00 to $42.25 on 7,519 head reported sold. Cash prices are higher on the Iowa Minnesota Direct morning cash hog report. The weighted average price added $0.06 per cwt to $41.42 per cwt with the range from $40.00 to $42.25 on 4,263 head reported sold. The National Pork Plant Report reported 181 loads selling with prices adding $1.91 per cwt. Lean hog index for 11/8 is at $49.80 down $0.34 with a projected two-day index of $49.55 down $0.25. Rick Kment can be reached at rick.kment@dtn.com (ES) Copyright 2016 DTN/The Progressive Farmer. All rights reserved.