DTN Midday Livestock Comments 12/01 12:22

DTN Midday Livestock Comments 12/01 12:22 Cattle Futures Mixed in Choppy Morning Trade Cattle trade remains split between cash market direction seen Wednesday and early December position movements being taking in many contracts. This could continue to adjust many contracts through the end of the trading session. By Rick Kment DTN Analyst GENERAL COMMENTS: Early support in cattle futures have faded with mixed trade seen in cattle futures at midday. The strong support in cash cattle trade continues to bring additional underlying support to nearby live cattle futures, although deferred futures markets remain weak. Hog futures are holding triple-digit losses in early December pressure. Corn prices are lower light trade. December corn futures are 4 cents lower. Stock markets are mixed in light trade. The Dow Jones is 56 points higher while Nasdaq is down 71 points. LIVE CATTLE: Firm live cattle support continues in the live cattle futures trade as December live cattle futures trade remains focused on the cash cattle market that developed Wednesday. The rest of the complex remains mixed in a moderate price range, although volume has slowed significantly through the end of the morning. Cash cattle trade is silent through the Thursday session with most activity likely to be done in the market. There may be some clean-up activity needed to be done before the end of the week, especially in the North. Asking prices are $115 to $116 in the South and $178 to $180 in the North. Beef cutouts at midday are mixed $0.21 higher (select) and down $0.43 per cwt (choice), with light movement of 79 total loads reported (38 loads of choice cuts, 14 loads of select cuts, five loads of trimmings, 22 loads of ground beef). FEEDER CATTLE: Light trade in feeder cattle markets is eroding early gains as traders look toward the pressure in hog markets and softness in several outside markets. Narrow trading ranges may continue through the last hour of trade, leaving traders with little direction during the end of the week. Cash markets may remain sluggish after Wednesday's bounces. LEAN HOGS: Triple-digit losses have developed in lean hog futures as traders slowly moved into the market during the first trading day of December. Position taking continued through the morning with additional volume quickly moving back into the market, which may keep the market under pressure through the rest of the trading session. December contracts have seen the most limited activity with 62-cent losses, but are trading above $50 per cwt at midday in moderate volume. Cash prices are unchanged on the National Direct morning cash hog report. The weighted average price remained steady at $45.09 per cwt with the range from $42.50 to $46.50 on 4,331 head reported sold. Cash prices are higher on the Iowa Minnesota Direct morning cash hog report. The weighted average price added $0.09 per cwt to $45.30 per cwt with the range from $42.50 to $46.50 on 916 head reported sold. The National Pork Plant Report reported 171 loads selling with prices gaining $1.09 per cwt. Lean hog index for 11/28 is at $48.03 down $0.03 with a projected two-day index of $48.22 up $0.19. Rick Kment can be reached at [email protected] (ES) Copyright 2016 DTN/The Progressive Farmer. All rights reserved.