DTN Midday Livestock Comments 11/17 12:15

DTN Midday Livestock Comments 11/17 12:15 Mixed Cattle Trade Adjusting to Higher Market Range Light trade is seen in cattle futures Thursday morning as aggressive buyer support flooded the complex Wednesday. The aggressive nature of futures and cash market activity has many traders stepping back to take in the recent market shift in order to regroup through the end of the week. By Rick Kment DTN Analyst GENERAL COMMENTS: Cattle futures remain mixed in directionless market moves as traders focus on lack of market activity following the surge of activity midweek. The focus on aggressive cattle market interest as well as higher live cattle prices Wednesday may limit activity through the rest of the week. Lean hog futures remain soft as markets are still stuck in the sideways trading range seen over the last several weeks. Corn prices are higher light trade. December corn futures are 2 cents lower. Stock markets are higher in light trade. The Dow Jones is 7 points higher while Nasdaq is up 35 points. LIVE CATTLE: Trade volume has remained sluggish through the morning Thursday as a combination of follow-through buyer support has mixed with position taking, keeping prices mixed through most of the morning. The aggressive cash trade volume seen Wednesday as well as lack of beef value support in boxed beef trade is likely to draw buyer interest back into futures trade through the rest of the day, although midweek gains remain supported and should hold. Cash cattle activity remains sluggish Thursday morning following active trade in all areas at sharply higher prices from last week's levels. Bids are seen in the South at $109 but most trade is expected to be done for the week. Beef cut-outs at midday are lower $0.34 lower (select) and down $0.09 per cwt (choice) with moderate movement of 89 total loads reported (57 loads of choice cuts, 20 loads of select cuts, no loads of trimmings, 12 loads of ground beef). FEEDER CATTLE: Feeder cattle contracts remain directionless through the morning with November contracts nearing expiration with prices trading steady to lower in single-digit ranges. Other nearby contracts are also holding narrow trading ranges with prices seen 22 cents lower to 17 cents higher as traders focus on position taking and light market activity following the swift adjustments seen midweek. January futures have quickly narrowed the gap over the last couple of trading sessions on the November contracts, with the current spread less than $2 per cwt. LEAN HOGS: Moderate price pullbacks developed through lean hog futures Thursday morning as traders remain in the sideways trading range seen over the last three weeks. The move in December contracts was on the threshold of breaking outside of that range Wednesday given the strong buyer support moving into the market. But with the inability to spark additional follow through interest and still lackluster fundamental market factors, trade continues to hold within the range contained between $46 and $48 per cwt in December contracts. Cash prices are lower on the National Direct morning cash hog report. The weighted average price fell $0.58 per cwt to $39.81 per cwt with the range from $38.00 to $40.50 on 3,392 head reported sold. Cash prices are lower on the Iowa Minnesota Direct morning cash hog report. The weighted average price fell $1.49 per cwt to $39.29 per cwt with the range from $38.00 to $40.50 on 857 head reported sold. The National Pork Plant Report reported 212 loads selling with prices falling $1.55 per cwt. Lean hog index for 11/15 is at $48.31 down $0.07 with a projected two-day index of $48.06 down $0.25. Rick Kment can be reached at rick.kment@dtn.com (ES) Copyright 2016 DTN/The Progressive Farmer. All rights reserved.