DTN Midday Livestock Comments 11/23 11:35

DTN Midday Livestock Comments 11/23 11:35 Live Cattle Trade Softens in Light Trade Volume Livestock futures remain mixed Wednesday morning with traders focusing on the lack of overall trade volume and market direction in front of the holiday weekend. Even though markets will remain open Friday, trading hours will be shortened, likely further limiting trade activity. By Rick Kment DTN Analyst GENERAL COMMENTS: Mixed trade is seen Wednesday morning through livestock futures as cattle futures are trading mostly lower due to lack of buyer support able to remain through the morning based on light volume. Strong gains continue to hold in lean hog futures trade with front month December lean hog futures setting the tone for renewed buyer activity despite limited trade volume. Corn prices are lower light trade. December corn futures are 1 cent lower. Stock markets are mixed in light trade. The Dow Jones is 29 points higher while Nasdaq is down 19 points. LIVE CATTLE: Light to moderate pressure is seen in live cattle futures trade through Wednesday morning as trade volume remains light. The initial narrow pressure has expanded to moderate 30 to 45 cent losses in all live cattle markets as the inability to bring new buyers back to the market heading into the weekend break has allowed for midweek market positioning. Traders are looking for additional market support from cash markets which will develop through the end of the week, as well as the firmness in beef values. But overall trade activity remains so subdued, fundamentals may have little impact through the rest of the week. Cash cattle markets are still not fully developed with bids seen through the morning in all areas. Live bids are seen at $107 in the South and $106 in the North while dressed bids of $168 are seen in the North. Asking prices are holding at $112 to $113 in the South and $174 in the North. Trade may still develop late Wednesday afternoon. Trade in the Fed Cattle Exchange Auction developed Wednesday morning with over 7,500 cattle selling at a range of $108.50 to $109.75 per cwt. Beef cut-outs at midday are higher $0.82 higher (select) and up $1.23 per cwt (choice) with light movement of 88 total loads reported (44 loads of choice cuts, 28 loads of select cuts, 1 load of trimmings, 15 loads of ground beef). FEEDER CATTLE: Strong early support in feeder cattle futures has quickly eroded as the trading session has developed with narrow losses now holding across the market. Trade volume remains light with traders for the most part looking on to next week as holiday activities have taken hold of the market and drawn most of the traders out of the market. Even though markets will remain open Friday, it is likely that trade volume and market activity will remain very subdued. LEAN HOGS: Firm nearby gains are holding in lean hog futures as traders continue to focus on the ability to sustain the light volume seen in the market and draw buyers back into the complex. December contracts remain focused on contract prices near $50 per through the morning with prices trading 65 cents higher at midday, currently holding at $49.95 per cwt. The rest of the complex remains mixed in a narrow range with very light trade volume developing through the market. Cash prices are lower on the National Direct morning cash hog report. The weighted average price fell $0.38 per cwt to $40.56 per cwt with the range from $39.00 to $42.00 on 4,492 head reported sold. Cash prices are lower on the Iowa Minnesota Direct morning cash hog report. The weighted average price fell $0.08 per cwt to $41.15 per cwt with the range from $40.00 to $42.00 on 2,210 head reported sold. The National Pork Plant Report reported 251 loads selling with prices falling $1.03 per cwt. Lean hog index for 11/21 is at $47.49 down $0.23 with a projected two-day index of $47.23 down $0.22. Rick Kment can be reached at rick.kment@dtn.com (ES) Copyright 2016 DTN/The Progressive Farmer. All rights reserved.