DTN Midday Livestock Comments 12/29 11:45

DTN Midday Livestock Comments 12/29 11:45 Mixed Livestock Markets Keep Prices in a Narrow Range Early morning market activity and moderate to wide price shifts have tempered significantly through the session as prices remain stuck in a narrowly mixed market range. Trade volume remains extremely sluggish as most traders are content with current positions until after the New Year. By Rick Kment DTN Livestock Analyst GENERAL COMMENTS: Mixed trade is seen through the entire livestock market with wide early market shifts tempered by overall lack of trade volume and the desire to stabilize the market following recent wide price swings. Livestock futures are expected to remain generally sluggish through the end of the session as narrowly mixed trade likely to hold through closing bell. Corn prices are higher in light trade. March corn futures are 1 cent higher. Stock markets are lower in light trade. The Dow Jones is 21 points lower while Nasdaq is down 13 points. LIVE CATTLE: Strong late-market buyer support is holding in the soon to expire December contracts with gains of $1.47 holding through late morning. But the emphasis has moved to February and April contracts with prices moving back from moderate early morning losses, and now trading in a narrow but mixed price range. Most contracts remain stuck in a range from 10 cents lower to 10 cents higher at midday, allowing very little market direction, or trade activity to be seen. It is likely that with the exception of December contracts, extremely light price movements will continue to develop. Cash cattle activity remains sluggish through the morning Thursday, although a few bids have started to develop in both the North and the South. Live bids are seen from $114 to $116 while dressed bids are evident from $185 to $187 per cwt. Asking prices remain at $118 to $120 live basis, while dressed asking prices are currently at $188 to $190 per cwt. Trade may develop yet Thursday afternoon, but could easily be rolled into Friday at this point. Beef cut-outs at midday are higher, $0.56 higher (select) and up $1.52 per cwt (choice) with light movement of 68 total loads reported (33 loads of choice cuts, 16 loads of select cuts, 5 loads of trimmings, 14 loads of ground beef). FEEDER CATTLE: Position taking is the main order of business Thursday morning with very light trade activity seen through the entire market. There continues to be little to no long-term direction developing in either the live cattle market or especially feeder cattle trade. This could create additional uncertainty through the entire market and may bring about additional narrow price moves through the end of the week. Traders are looking for additional support developing through the first quarter of 2017, but for now, most traders are content remaining on the sidelines. LEAN HOGS: Early pressure which developed early in the Thursday session across most lean hog futures has quickly evaporated with prices stuck in a very narrow but mixed trading range through the entire complex. Light trade volume is the main focus of the undirected price activity, which continues to leave market interest sluggish going into the end of the week and holiday break. It is likely that prices may chop around in a narrowly mixed range through the end of the session. Cash prices are lower on the National Direct morning cash hog report. The weighted average price fell $0.51 at $51.38 per cwt with the range from $44.00 to $52.03 on 3,848 head reported sold. Cash prices are lower on the Iowa Minnesota Direct morning cash hog report. The weighted average price fell $1.86 at $49.89 per cwt with the range from $45.00 to $50.50 on 1,133 head reported sold. The National Pork Plant Report reported 131 loads selling with prices falling $1.07 per cwt. Lean hog index for 12/23 is at $58.14 down $0.04 with a projected two-day index of $57.95 down $0.19. Rick Kment can be reached at [email protected] (ES) Copyright 2016 DTN/The Progressive Farmer. All rights reserved.