DTN Midday Livestock Comments 12/23 11:21

DTN Midday Livestock Comments 12/23 11:21 Feeder Cattle Placements and Hog Inventory Levels Expand The focus on November placements of feeder cattle through the country and overall hog numbers in the quarterly hogs and pigs report has turned markets firmly lower following the early release of these report. Trade volume remains sluggish, which could add volatility to the market early next week. By Rick Kment DTN Livestock Analyst GENERAL COMMENTS: Livestock futures have shifted lower late morning following higher than expected cattle placements in the month of November and larger than expected hog inventories. The light trade volume may subdue overall price shifts, and potentially add increased market shifts into the market when traders come back from the long holiday weekend on Tuesday morning. Corn prices are lower light in trade. March corn futures are 1 cent lower. Stock markets are mixed in light trade. The Dow Jones is 8 points lower while Nasdaq is up 2 points. LIVE CATTLE: Live cattle futures have remained generally sluggish through late morning with traders focusing on overall cattle on feed numbers coming in generally on pace with expected predictions. Front-month December futures are holding moderate gains, but offset by light to moderate pressure in deferred contracts. Late 2017 and early 2018 contracts are most affected based on the increased cattle placement numbers which may add to supply concerns long term in the market. Cash cattle markets appear to be mostly done following the moderate to active trade seen Thursday. A few scattered bids have developed through the market with packers offering $116 live basis and $180 dressed basis. Asking prices on cattle still left to sell are likely to be priced around $118 live basis and $183 and higher in dressed. There could be some clean up trade late morning following the cattle on feed report release. FEEDER CATTLE: Feeder cattle futures have turned sharply lower following the early release of the cattle on feed report. Feeder cattle placements were listed 115% year ago levels which is above the early estimated average, but still within the expected range of guesses before the report. This has pushed contracts $1.25 per cwt lower in nearby contracts, allowing for additional pressure to develop through the end of the session and likely into next week. LEAN HOGS: Lean hog futures have turned lower in moderate pressure following the quarterly release of the hogs and pigs report. Total hog inventory increased 4%, which is higher than expected. The post-report market moves sparked strong pullback in buying activity moving contracts 75 cents to $1 per cwt midmorning. With markets closing early, there is only limited time to allow for market shifts following the report. This could push additional volatility into the market Tuesday. The weighted average price fell $0.97 at $51.84 per cwt with the range from $51.00 to $53.00 on 1,210 head reported sold. The National Pork Plant Report reported 150 loads selling with prices gaining $0.06 per cwt. Lean hog index for 12/21 is at $58.18 unchanged with a projected two-day index of $58.18 unchanged. Rick Kment can be reached at rick.kment@dtn.com (ES) Copyright 2016 DTN/The Progressive Farmer. All rights reserved.