Moderate to firm losses have snuck into the livestock market due to extremely sluggish market activity at the end of the week. This is allowing for market positioning following a strong market gain in both cattle and hog futures. The correction in the market is not creating any sense of panic selling at this point, as traders are now looking forward toward next week as well as the month of November. Corn prices are lower in light trade. December corn futures are 3 cent per bushel lower. Stock markets are higher in light trade. The Dow Jones is 38 points higher while Nasdaq is up 135 points.
LIVE CATTLE:
Live cattle futures are trading mostly lower with front month October contracts the only contract month posting a firm gain at midday. This buyer support in the October contract comes as traders try to roll out of the front month futures before contracts expire, even though trade and market interest remains extremely light. The remainder of the complex is holding losses of 40 to 80 cents per cwt as traders are taking a more thoughtful approach to the market which has yet to see any cash market activity for the week. The expectation is that live cattle futures will hold the current range into closing bell due to the light volume seen across the complex through most of the morning. Cash cattle remain extremely quiet Friday morning with a few bids redeveloping through the South with price at $111 per cwt. Interest and activity is going to pick up over the next few hours as packers are expected to still need to gain access to a moderate amount of cattle for next week's runs. Asking prices remain firm at $116 and higher live basis in the South and $180 and higher in the North. Beef cut-outs at midday are higher, $0.44 higher (select) and up $1.18 per cwt (choice) with light movement of 55 total loads reported (24 loads of choice cuts, 15 loads of select cuts, 8 loads of trimmings, 9 loads of ground beef).
FEEDER CATTLE:
Feeder cattle futures remain firmly lower, although the overall sluggish market activity in the complex has kept traders extremely lackluster at the end of the week. Due to the overall light market interest and sluggish volume, traders are taking advantage of position squaring opportunities following the market rally which developed over the past several days. It is uncertain just how much of this pressure will carry into closing bell as most contracts are already well off of session lows at midday.
LEAN HOGS:
Firm pressure is slowly developing across he lean hog futures complex Friday morning as traders continue to be driven more by an overall lack of market interest at the end of the week rather than any change in fundamental or technical factors. Prices are holding losses of 50 to 80 cents per cwt, as some traders have started taking advantage of position taking opportunities ahead of the weekend break. Cash prices are lower on the National Direct morning cash hog report. The weighted average price fell $0.19 at $65.37 per cwt with the range from $59.00 to $66.50 on 4,332 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 135 loads selling with prices gaining $0.33 per cwt. Lean hog index for 10/25 is at $68.28 up $0.96 with a projected two-day index of $68.94, up $0.66.
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