Moderate to widespread selling activity has developed in livestock trade despite the early support which moved into the cattle complex Tuesday morning. This is likely to spark additional weakness through the near future, as traders continue to focus on longer term market direction. Corn prices are lower in light trade. December corn futures are 1/4 cent per bushel lower. Stock markets are mixed in light trade. The Dow Jones is 49 points lower while Nasdaq is up 19 points.
LIVE CATTLE:
Live cattle futures are trading in a moderate but mixed trading range after buyers quickly exited the market through the morning. Most contracts are holding losses of 20 to 50 cents per cwt with the overall lack of support in the complex focused on spring and summer contracts. The inability to sustain strong buyer interest adds to the already weak market tone which has developed over the last couple of weeks. Cash cattle trade is undeveloped at this point although bids are starting to develop Tuesday morning in the North at $187 per cwt. It is not expected that aggressive trade will develop over the near future, based on the sluggishness of asking prices to become well defined. A few loads of cattle have been reported priced at $121 live basis, but this is limited by the scope of activity through the morning. Beef cut-outs at midday are higher, $1.83 higher (select) and up $0.20 per cwt (choice) with light movement of 57 total loads reported (29 loads of choice cuts, 13 loads of select cuts, 8 loads of trimmings, 7 loads of ground beef).
FEEDER CATTLE:
Light to moderate pressure has developed in feeder cattle trade as market activity has moved from the firm gains seen early in the session and now focus on the overall consistent pressure in most cattle markets. Feeder cattle futures are holding losses of 15 to 90 cents per cwt with front month January futures leading the move lower as prices have fallen below $150 per cwt.
LEAN HOGS:
Strong price pressure has developed Tuesday morning as traders quickly backed away from previous market support. Even though prices are holding losses of $1 to $1.50 per cwt through most of the morning, the ability to draw additional volume to the market has been limited. This could minimize additional liquidation through the next several hours. Cash prices are lower on the National Direct morning cash hog report. The weighted average price is down $0.05 at $59.09 per cwt with the range from $55.00 to $60.00 on 9,119 head reported sold. Cash prices are higher on the Iowa/Minnesota Direct morning cash hog report. The weighted average price added $0.40 at $59.67 per cwt with the range from $57.00 to $60.00 on 3,940 head reported sold. The National Pork Plant Report posted 231 loads selling with carcass values adding $0.31 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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