DTN Midday Livestock Comments 11/28 11:09
Feeder Cattle Futures Push Higher
Strong gains in nearby feeder cattle futures early Friday has helped to
bring stability and moderate support to the entire cattle futures complex. Lean
hog futures remain under pressure in the lightly traded post-holiday session.
By Rick Kment
Trade remains extremely sluggish through the livestock complex with moderate
pressure seen in lean hog trade as traders focus on the potential for some
additional follow through fundamental pressure developing in early December as
traders focus more on potential supply issues. Cattle trade is mostly higher
based on strong support in feeder cattle trade during Friday morning. Corn
prices are lower in light trade. December corn futures are 3 cents per bushel
lower. Stock markets are higher in light trade. The Dow Jones is 55 points
higher while Nasdaq is up 15 points.
Live cattle trade remains mixed with pressure in nearby contracts being
offset by moderate to strong gains midmorning in the deferred contracts. Trade
volume remains near a standstill with few traders returning back to the complex
following the Thursday holiday. The fact that markets are trading on an
abbreviated schedule is also limiting overall activity through the market. Cash
cattle trade appears to be done for the week following activity seen Wednesday.
Although overall numbers remain extremely light for the week, there seems to be
very little aggressive interest shown early Friday morning. A few bids of $265
are seen in the North during the morning, but it is uncertain if this will get
Moderate to strong gains have developed over the feeder cattle futures
market early Friday. The focus of midweek live cattle cash trade, as well as
the potential for some post-holiday buyer support trickling into the market
through early December has sparked interest in nearby feeder cattle futures.
Early trade remains sluggish Friday morning with the complex remaining
defensive due to lack of fundamental cash market support expected as well as
overall light trade through most of the market. Nearby contracts are holding
losses of 25 to 50 cents per cwt, which has backed away from early session lows
as traders head to the early close of market trade Friday. Cash prices are
lower on the National Direct morning cash hog report. The weighted average
price fell $0.15 per cwt to $84.75 per cwt with the range from $84.28 to $86.50
per cwt on 3,355 head reported sold. Cash prices are unreported due to
confidentiality on the Iowa Minnesota Direct morning cash hog report. The
National Pork Plant Report is reported 129 loads selling as prices falling
$1.11 per cwt. Lean hog index for 11/24 is at $88.74 down $0.04, with a
projected two-day index of $88.85 up 0.11.
Rick Kment can be reached at firstname.lastname@example.org
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