DTN Midday Livestock Comments 11/15 12:16

DTN Midday Livestock Comments 11/15 12:16 Live Cattle Futures Mixed in Narrow Range Cattle Futures remain directionless midday Tuesday with live cattle futures stuck in a narrow trading range. The lack of follow-through support able to hold prices above $106 per cwt in December contracts has allowed for pressure to redevelop during late day trade. By Rick Kment DTN Analyst GENERAL COMMENTS: Firm buyer support developed in live cattle futures midmorning, helping to push December live cattle futures back to $106 per cwt. But these levels were unable to be supported as prices quickly backed away from session highs and continue to hold narrowly mixed trading ranges at midday. The lack of direction in the cattle complex continues to focus on the uncertainty in the complex as traders remain on the verge of pushing prices over resistance levels in nearby contracts. Lean hog futures remain under pressure Tuesday with triple-digit losses developing. Corn prices are higher light trade. December corn futures are 4 cents lower. Stock markets are mixed in light trade. The Dow Jones is 33 points lower while Nasdaq is up 30 points. LIVE CATTLE: Live cattle futures remain mixed in light trade with futures hovering in a narrow trading range. The firm buyer support seen through midmorning was short lived and unable to hold as prices tested $106 per cwt in front month December contracts. Narrowly mixed prices are seen at midday, keeping markets stable, but generally without direction through the last half of the trading session. Cash cattle activity is undeveloped Tuesday with bids still unavailable and may remain that way through midweek. Asking prices seem to be all over the board at this point, and this may be based on the lack of direction in live cattle trade and shifts in beef values through the first couple days of the week. Beef cut-outs at midday are higher $1.29 higher (select) and up $0.50 per cwt (choice) with light movement of 67 total loads reported (35 loads of choice cuts, 16 loads of select cuts, 4 loads of trimmings, 12 loads of ground beef). FEEDER CATTLE: Mixed trade is holding in feeder cattle futures at midday Tuesday with front month November contracts inching higher based on buyers stepping back into the complex in front of markets expiring Thursday. The rest of the complex has eroded lower through the morning as traders remain directionless during light morning trade. Light activity continues to keep activity sluggish with traders unwilling to move prices with any significant price level, but the narrow shifts in live cattle markets will likely keep prices slow to respond through the rest of the session. LEAN HOGS: Sharp losses have quickly developed through lean hog futures with traders quickly moving back into the complex as December contracts hold triple-digit losses at midday. This has pushed front-month futures under $46 per cwt, and has broken through the range-bound price level seen through the last three weeks. The inability to hold this market range may spark additional liquidation in front of the Thanksgiving holiday season given the lack of support in cash hog markets and uncertain pork values through the end of the month. Cash prices are lower on the National Direct morning cash hog report. The weighted average price fell $0.67 per cwt to $40.07 per cwt with the range from $38.50 to $41.25 on 4,760 head reported sold. Cash prices are lower on the Iowa Minnesota Direct morning cash hog report. The weighted average price fell $0.37 per cwt to $40.66 per cwt with the range from $38.50 to $41.25 on 1,211 head reported sold. The National Pork Plant Report reported 194 loads selling with prices slipping $0.28 per cwt. Lean hog index for 11/11 is at $48.46 down $0.74 with a projected two-day index of $48.38 down $0.08. Rick Kment can be reached at rick.kment@dtn.com (ES) Copyright 2016 DTN/The Progressive Farmer. All rights reserved.