DTN Midday Livestock Comments 12/09 12:01

DTN Midday Livestock Comments 12/09 12:01 Cattle Futures Remain Lower, But Pull off of Morning Lows Strong early pressure quickly developed through live cattle and feeder cattle markets. The lack of support in the market remains focused on early week pressure and softness developing in cattle trade. By Rick Kment DTN Livestock Analyst GENERAL COMMENTS: Firm losses have quickly developed through live cattle futures early in the session, but lack of follow through selling pressure has allowed for loses to be cut in half and markets to moderate through the end of the week. Hog markets are mixed in a choppy market direction. Corn prices are lower light trade. December corn futures are 3/4 cent lower. Stock markets are higher in light trade. The Dow Jones is 78 points higher while Nasdaq is up 21 points. LIVE CATTLE: Live cattle futures have stabilized at midday, giving up sharp double-digit losses, although the complex still remains firmly lower. Early losses have been cut in half through the morning, but the lack of buyer support seen in the market may continue to limit trade activity not only late Friday, but through the first half of next week. Cash cattle activity has become more active with trade seen in the South at $110 per cwt while activity in the North is hovering near $170 per cwt. Beef cut-outs at midday are higher $0.43 (select) and up $0.77 per cwt (choice) with moderate movement of 72 total loads reported (38 loads of choice cuts, 12 loads of select cuts, 6 loads of trimmings, 15 loads of ground beef). FEEDER CATTLE: Feeder cattle futures have pulled back from triple-digit losses during midmorning, with losses hovering in a narrow trading range. Trade volume has remained extremely light through most of the morning, allowing for this early pressure to fade as contracts are filled. Currently trade is holding at 80 to 95 cents per cwt lower, creating some lack of direction going into next week. LEAN HOGS: Activity in lean hog futures remains quiet through most of the morning Friday with firm late morning gains still holding in December contracts, while the rest of the complex has eroded through the trading session. End of the week positioning is the main focus Friday, as the current losses are no threat to the aggressive market shift higher seen over the last week. Cash prices are lower on the National Direct morning cash hog report. The weighted average price fell $1.32 at $52.12 per cwt with the range from $46.00 to $54.00 on 3,044 head reported sold. Cash prices are lower on the Iowa Minnesota Direct morning cash hog report. The weighted average price fell $2.07 per cwt to $51.76 per cwt with the range from $48.00 to $54.00 on 1,089 head reported sold. The National Pork Plant Report reported 155 loads selling with prices falling $0.07 per cwt. Lean hog index for 12/6 is at $51.95 up $0.92 with a projected two-day index of $53.17 up $1.22. Rick Kment can be reached at rick.kment@dtn.com (ES) Copyright 2016 DTN/The Progressive Farmer. All rights reserved.