DTN Midday Livestock Comments 11/19 11:53

DTN Midday Livestock Comments 11/19 11:53 Moderate Price Pullbacks Develop Thursday Moderate losses have moved back into live cattle and feeder cattle futures Thursday morning with traders adjusting following the strong gains earlier in the week. Position taking continues to be seen across the complex as traders take advantage of market shifts, without moving outside of current market ranges. By Rick Kment DTN Analyst GENERAL COMMENTS: Moderate pressure through the entire cattle complex Thursday morning has led to traders taking a more measured approach to market direction over the next couple of weeks. The breakaway from sharp market gains in the last couple trading seasons has brought traders back to reality, with the focus on market positioning and some stability likely developing midday Thursday. Corn prices are higher in light trade. December corn futures are 1 cent higher in front month December contracts. Stock markets are higher in light trade. The Dow Jones is 2 points higher while Nasdaq is up 8 points. LIVE CATTLE: The pull back away from market gains following strong price support over the last couple trading sessions is not a surprise to the market, although the lack of follow through support is unwelcome to traders who were focusing on continuing the upward price trend through the rest of the week. Strong pressure in beef values continue to create fundamental market concerns about the ability to sustain long term market support through the next several weeks if beef demand is not able to rebound significantly. Cash cattle markets are still dead quiet with no bids developing yet as packers seemingly waiting until Friday to make a strong end of the week push. The midday pullback in futures prices is putting any sense of interest on the back burner until the very end of the week. Asking prices are still seen in the South at $130 and higher, but not getting any interest. Beef cut-outs at midday are lower, $2.66 lower (select) and down $1.60 per cwt (choice) with moderate movement of 97 total loads reported (47 loads of choice cuts, 24 loads of select cuts, 9 loads of trimmings, 16 loads of ground beef). FEEDER CATTLE: Cattle futures have been littered by back-and-forth trade through most of the morning, which has created underlying concerns traders may be backing away from previously aggressive market support. Front month November futures are still able to hold moderate gains, but the rest of the complex is under moderate to strong pressure at midday, even though at midday, all losses have been limited to double-digit losses, at least for the time being. LEAN HOGS: Firm nearby gains continue to develop and hold through the morning Thursday as traders focus on increased market support and higher pork values in the morning cutout report. This is helping to push December lean hog futures contracts $1 per cwt higher at midday, with prices trying to establish roots at $55 per cwt. The ability to build upon price levels at this point and sustain additional volume through the end of the week could spark longer-term bullish support through nearby contracts, helping to draw renewed interest back into the complex. Cash prices are lower on the National Direct morning cash hog report. The weighted average price fell $0.65 per cwt to $49.10 per cwt with the range from $48.00 to $51.00 per cwt on 3,311 head reported sold. Cash prices are unreported due to confidentiality on the Iowa Minnesota Direct morning cash hog report. The National Pork Plant Report reported 250 loads selling with prices added $2.70 per cwt. Lean hog index for 11/17 is at $56.04 down 0.45, with a projected two-day index of $55.87, down 0.17. Rick Kment can be reached at [email protected] (BAS) Copyright 2015 DTN/The Progressive Farmer. All rights reserved.