Sharp losses have quickly developed across the cattle complex Thursday morning. This overall lack of support may continue to add price pressure in both live cattle and feeder cattle markets at the end of the month. Hog markets remain mixed with pressure developing across the cattle trade, and limiting additional market support. Corn prices are higher in light trade. December corn futures are 3 cents per bushel higher. Stock markets are higher in light trade. The Dow Jones is 324 points higher while Nasdaq is up 49 points.
LIVE CATTLE:
Early trade that backed away from previous gains gained momentum through the complex with losses of $1 to $2 per cwt through all contracts. This lack of support at the end of the month is not totally surprising, although there continues to be some increased market concern about the ability to draw additional active buyer support back into the market through the next couple of weeks. Beef demand is expected to remain firm through the end of the year, potentially limiting additional market pressure in the near future. Cash cattle activity remains light with cash trade still being put off until later in the afternoon or potentially sometime Friday. Live bids are seen at $117 to $118 per cwt while dressed bids remain at $188 to $190 per cwt. Beef cut-outs at midday are lower, $0.70 lower (select) and down $0.94 per cwt (choice) with activity movement of 123 total loads reported (56 loads of choice cuts, 23 loads of select cuts, 14 loads of trimmings, 30 loads of ground beef).
FEEDER CATTLE:
Sharp triple-digit losses have quickly flooded into all cattle markets. The feeder cattle trade appears to be the main driver of the lower prices with increased uncertainty developing in the complex. Nearby futures are holding $3 per cwt at midday, leaving concern for additional losses to develop through early December.
LEAN HOGS:
Lean hog futures remain mixed in a narrow trading range with the overall lack of direction developing on the last trading session of the month. This market activity may lead to additional pressure through the end of the trading session, although the sharp losses in cattle trade have seen very little spill over impact in the hog market through the morning. Cash prices are higher on the National Direct morning cash hog report. The weighted average price added $0.09 at $58.64 per cwt with the range from $56.00 to $60.00 on 5,364 head reported sold. Cash prices are higher on the Iowa/Minnesota Direct morning cash hog report. The weighted average price added $0.79 at $59.62 per cwt with the range from $57.50 to $60.00 on 2,514 head reported sold. The National Pork Plant Report posted 177 loads selling with carcass values gaining $0.48 per cwt. Lean hog index for 11/28 is at $62.96 up $0.07 with a projected two-day index of $62.89, up $0.19.
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