Firm losses have quickly moved through the complex. This is bringing additional market pressure in both live cattle and feeder cattle trade. The overall lack of support seen Friday has brought additional uncertainty to the entire market. Corn prices are lower in light trade. December corn futures are 6 cents per bushel lower. Stock markets are mixed in light trade. The Dow Jones is 199 points higher while Nasdaq is down 16 points.
LIVE CATTLE:
Strong pressure has stepped back into the complex following a volatile up-and-down market shift through the morning. Even though price moves have been limited to moderate shifts compared to the strong triple digit losses that developed Friday, the weaker tone of the market continues to sweep through the complex. This may bring additional support to the market and may bring additional selling later in the week. December live cattle contracts have broken through short-term support seen in November, and now traders continue to focus on October lows as the next support level. Cash cattle markets are sluggish with light trade seen similar to prices paid Thursday afternoon. Live cattle have been sold at $120 with $190 seen dressed. There continues to be bids seen through most areas, although it is uncertain how much additional trade will develop given the pressure in futures markets. Beef cut-outs at midday are higher, $3.62 higher (select) and up $2.23 per cwt (choice) with light movement of 52 total loads reported (20 loads of choice cuts, 8 loads of select cuts, 14 loads of trimmings, 10 loads of ground beef).
FEEDER CATTLE:
Strong market pressure has redeveloped in cattle trade, although losses have been limited to 40 to 80 cent losses at midday. This pressure follows a volatile up and down move through the morning where prices ranged from firm losses, to strong gains, now focusing on additional losses through the last half of the trading session. The sharp triple-digit losses seen Friday carries even more pressure into the complex as traders try to focus on the long-term direction of the market.
LEAN HOGS:
Lean hog futures remain mostly higher as buyer support stepped back into the complex Monday following early market pressure. Front month December futures still remain firmly lower, with a 65 cent per cwt loss, while all other nearby contracts are holding steady to 70 cent gains as market expectations of additional underlying support is moving through the complex. Cash prices are unchanged on the National Direct morning cash hog report. The weighted average price is unchanged at $59.27 per cwt with the range from $55.00 to $60.00 on 6,677 head reported sold. Cash prices are higher on the Iowa/Minnesota Direct morning cash hog report. The weighted average price added $0.22 at $59.62 per cwt with the range from $57.00 to $60.00 on 3,280 head reported sold. The National Pork Plant Report posted 139 loads selling with carcass values falling $0.83 per cwt. Lean hog index for 11/30 is at $63.26 up $0.27 with a projected two-day index of $63.92, up $0.66.
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