Moderate to firm pressure is seen midday through lean hog and live cattle trade with early week activity pulling away from the light market activity that led to recent gains late last week. Outside market pressure is also adding to pressure in the livestock trade early Monday. Corn markets are lower in light trade. December corn futures are 3 cents lower. Stock markets are higher in light trade. The Dow Jones is 192 points higher while Nasdaq is up 71 points.
LIVE CATTLE:
Light to moderate pressure is seen Monday morning as initial single digit gains which developed in the first few minutes of trade were unable to regain any buyer support. Traders are focusing on slowly backing away from Friday gains which developed due to limited volume in the market and continued reaction to the cattle on feed report. The underlying tone of the market still remains firm following active buyer activity over the last week. This may continue to bring about market adjustments as traders focus on end-of-month positioning even though overall firm beef demand is expected to hold through the end of the year. Cash cattle interest remains undeveloped Monday morning with bids and asking prices likely not to be seen until midweek. Strong price moves last week helped to add underlying firmness to the cash complex and may spark some additional support through the end of the month. Boxed Beef cut-outs at midday are higher, $1.01 higher (select) and up $0.50 per cwt (choice) with light movement of 17 total loads reported (8 loads of choice cuts, 4 loads of select cuts, no loads of trimmings, 5 loads of ground beef).
FEEDER CATTLE:
Feeder cattle trade has remained stuck in a narrow trading range following limited trade volume moving back into the complex Monday. The limited support seen in front month January futures is adding some uncertainty to the complex based on losses seen in live cattle trade. Traders focus on the softness redeveloping in grain markets which will relate to lower feed costs and lower production costs through the end of the year. But trade volume still remains sluggish as most contracts are hovering in a very narrow trading range midday Monday.
LEAN HOGS:
Apparent light trade has once again been seen through the entire lean hog complex, although this has not limited selling pressure from actively developing. Triple-digit losses are seen in all nearby contracts as February futures are leading the complex lower. Although futures have broken through last week's support levels of $66.17 per cwt through the morning, the market still remains $5.50 per cwt above longer term support levels set earlier in the month. This may allow for increased wide market shifts to develop through the end of the month and early December as traders focus on fundamental market activity through the complex. Cash prices are unreported due to confidentiality on the National Direct morning cash hog report. Cash prices are unreported due to confidentiality on the Iowa/Minnesota Direct morning cash hog report. The National Pork Plant Report posted 64 loads selling on the morning report. Pork carcass values added $2.53 per cwt at $66.88 per cwt. Lean hog index for 11/21 is $57.84, down 0.18, with a projected two-day index of $57.44, down 0.40.
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