DTN Midday Livestock Comments 11/25 12:16
Cattle Futures Firm Midweek
Light support developed across cattle futures helped to push prices higher
early Wednesday. This created additional support through the market, and moved
additional firm buying interest into hog trade.
By Rick Kment
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 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).
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.
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 firstname.lastname@example.org
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