DTN Midday Livestock Comments 11/28 12:00

DTN Midday Livestock Comments 11/28 12:00 December Live Cattle Slipping at Midday Monday Directionless trade has developed through most of the morning Monday. The lack of activity in the market has left the market open for position taking in nearby futures, allowing for moderate pressure to move into front month live cattle futures midday Monday. By Rick Kment DTN Analyst GENERAL COMMENTS: Livestock futures have traded in a mixed but choppy pattern through most of the morning following the aggressive triple-digit gains which quickly developed Friday. Pressure is seen in live cattle and feeder cattle futures at midday with traders looking for positioning opportunities due to the generally sluggish market activity and narrow trading patterns throughout the complex. Corn prices are mixed light trade. December corn futures are 3/4 cent lower. Stock markets are lower in light trade. The Dow Jones is 35 points lower while Nasdaq is down 11 points. LIVE CATTLE: Narrow trading ranges defined live cattle futures activity through most of the morning, although pressure has developed in front month futures at midday. This has pushed December contracts 65 cents per cwt lower as traders adjust trading positions following the aggressive holiday gains. Even with the market losses, front month futures are trading above $110 per cwt, confirming the strong move higher seen Friday and nearly $3 per cwt over the 100 day moving average. Cash cattle activity is quiet through the day Monday with showlist distribution and inventory taking the only activity seen or expected through the day. It is likely that showlists will remain mixed through cattle country as packers focus on procuring slaughter needs for the first full week of December. Beef cut-outs at midday are higher $1.28 higher (select) and up $0.48 per cwt (choice) with light movement of 38 total loads reported (17 loads of choice cuts, 6 loads of select cuts, 6 loads of trimmings, 9 loads of ground beef). FEEDER CATTLE: Feeder cattle futures have bounced higher and lower through the morning with midmorning gains now retreating based on pressure developing in the live cattle market. This has pushed nearby and deferred feeder cattle futures 15 to 22 cents per cwt lower at midday. Even the light losses have been extremely limited given the sharp triple digit gains seen Friday and apparent focus on holding commercial support through the holiday season. With January futures trading above $127 per cwt, traders remain focused on the potential for additional market support, but also are attempting to square positions at the end of the lightly traded Monday session. LEAN HOGS: Narrow nearby contract gains continue to hold as light buyer support has trickled back into the complex Monday morning. The focus in the complex has not only confirmed triple digit gains seen Friday, but also has helped to draw buyer support through early-week trade. The overall lack of market volume in the entire livestock complex during early week trade is somewhat surprising given the fact that traders were extremely lethargic through most of last week. But with the trend holding strong, buyers are willing to slowly step into deferred contracts, and potentially work the market higher over the next several trading sessions. There may be some late month buying still developing as the month of November comes to a close over the next couple of days. Cash prices are lower on the National Direct morning cash hog report. The weighted average price fell $0.48 per cwt to $41.43 per cwt with the range from $39.00 to $43.25 on 4,890 head reported sold. Cash prices are lower on the Iowa Minnesota Direct morning cash hog report. The weighted average price fell $0.55 per cwt to $41.76 per cwt with the range from $39.00 to $42.00 on 2,230 head reported sold. The National Pork Plant Report reported 62 loads selling with prices gaining $3.57 per cwt. Lean hog index for 11/23 is at $47.89 up $0.37 with a projected two-day index of $48.06 up $0.17. Rick Kment can be reached at rick.kment@dtn.com (ES) Copyright 2016 DTN/The Progressive Farmer. All rights reserved.