Tuesday Midday Livestock Market Summary - Cattle Futures Weaken in Limited Trade

General Comments

Light to moderate loses are seen in most livestock trade with very little additional direction seen across the complex. Trade volume will likely remain limited through the end of the session. Corn markets are lower in light trade. December corn futures are 1/4 cent lower. Stock markets are lower in light trade. The Dow Jones is 441 points lower while Nasdaq is down 87 points.

LIVE CATTLE:

Firm losses have slowly developed across the complex with increased overall trade movement limited to nearby contracts. December futures are holding a 40 cent loss at midday, with limited activity expected to develop over the near future. There is likely to be some sluggish market positioning done through the rest of the week, although trade volume may be limited through the complex due to holiday activities. Cash cattle markets are still sluggish with limited additional movement seen through the day Tuesday. Bids and asking prices are expected to be more available as the week progresses. Boxed Beef cut-outs at midday are mixed, $0.01 lower (select) and up $0.77 per cwt (choice) with light movement of 67 total loads reported (40 loads of choice cuts, 15 loads of select cuts, 3 loads of trimmings, 8 loads of ground beef).

FEEDER CATTLE:

Light pressure is seen at midday as limited overall activity has been developing through the morning. Firm losses in cattle trade has been tempered by overall lack of market direction and lackluster trade interest. The focus on bearish outside markets has kept most traders on the sidelines, although the tone of the complex remains unchanged.

LEAN HOGS:

Sharp losses continue to hold in lean hog futures trade with front-month December contracts leading the market lower with a $1.80 per cwt loss. This overall pressure is being driven by outside market losses as traders continue to focus on wide market shifts in the hog complex over the last couple of weeks. Current losses are likely to hold through the end of the session, potentially leading to additional losses Wednesday. Cash prices are lower on the National Direct morning cash hog report. The weighted average price is $0.52 lower at $51.26 per cwt with the range from $46.00 to $52.50 on 2,672 head reported sold. Cash prices are unreported due to confidentiality on the Iowa/Minnesota Direct morning cash hog report. The National Pork Plant Report posted 229 loads selling on the morning report. Pork carcass values fell $2.37 per cwt at $66.44 per cwt. Lean hog index for 11/15 is $59.10, down 0.76, with a projected two-day index of $58.51, down 0.59.

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