DTN Midday Livestock Comments

Cattle Futures Firm Midweek

Rick Kment
By  Rick Kment , DTN Analyst
(DTN photo by Russ Quinn)

GENERAL COMMENTS:

Livestock futures are holding moderate to firm support in light trade Wednesday morning as light volume is see before traders break for the Thanksgiving day holiday. This could allow for sluggish end-of-day activity allowing for prices to hold in very little market movement before closing bell. Corn prices are higher in light trade. December corn futures are 3 cents higher in front-month December contracts. Stock markets are higher in light trade. The Dow Jones is 25 points higher while Nasdaq is up 12 points.

LIVE CATTLE:

Live cattle futures trade is holding moderate gains at midday as light support continues to trickle through the morning and may continue to shift into the end of the day. Very light trade is seen through the market, allowing markets to coast into closing bell and the Thanksgiving holiday. Trade is still undeveloped, but packers are becoming more active with bids developing in the North at $195 through the morning. Asking prices are seen at $131 to $132 in the South and $200 and higher in the North. Both sides would like to get business done before the end of the day, although the trend over the last few weeks to move trade to late Friday afternoon would create another return Friday after the holiday. Beef cut-outs at midday are higher, $1.18 higher (select) and up $1.38 per cwt (choice) with active movement of 132 total loads reported (69 loads of choice cuts, 18 loads of select cuts, 15 loads of trimmings, 30 loads of ground beef).

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FEEDER CATTLE:

Light gains have bantered back and forth through the feeder cattle market during the lightly traded session Wednesday morning as volume has slowed through the last day of trade before the holiday. The focus on market activity before the break seems to be creating additional sluggish trade interest which may create additional softness through the market. Prices are 20 to 50 cents higher, which are likely to carry into closing bell, but unlikely to spark any additional market shifts through the end of the week.

LEAN HOGS:

Triple-digit gains have developed Wednesday in nearby lean hog futures as strong buying quickly stepped into the market based on firm cash market support. Additional interest is seen through the rest of the complex, which is helping to draw prices higher. Follow-through buying is expected to be seen through the end of the session. Cash prices are higher on the National Direct morning cash hog report. The weighted average price added $0.78 per cwt to $51.46 per cwt with the range from $47.00 to $52.25 per cwt on 2.285 head reported sold. Cash prices are higher on the Iowa Minnesota Direct morning cash hog report. The weighted average price added $0.31 per cwt to $52.21 per cwt with the range from $47.00 to $52.25 per cwt on 2.285 head reported sold. The National Pork Plant Report reported 223 loads selling with prices down $0.84 per cwt. Lean hog index for 11/19 is at $55.52 down 0.35, with a projected two-day index of $55.37, down 0.37.

Rick Kment can be reached at rick.kment@dtn.com

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Rick Kment