Friday Midday Livestock Market Summary - Limited Direction Develops Friday

General Comments

Mixed trading ranges have been seen Friday morning with a combination of follow-through pressure and short covering at the end of the week. Lean hog futures have bounced back from strong morning losses as traders move back into the complex. Mixed trade is seen in live cattle and feeder cattle futures in limited volume. Corn markets are higher in light trade. March corn futures are 2 1/2 cent higher. Stock markets are lower in active trade. Dow Jones is 458 points lower with Nasdaq down 171 points.

LIVE CATTLE:

Narrow losses have continued to be seen in live cattle futures with most contracts steady to 10 cents per cwt lower. Prices have moved back and forth through the morning as prices have shifted higher and lower in a narrow range. There continues to be some additional softness at the end of the week given the volatility through the week. Cash cattle bids have started to develop near midday with live prices seen at $114 per cwt while dressed bids are seen at $183 to $185 per cwt. Asking prices remain at $120 per cwt live and $190 dressed, which is still a large gap from current bids. At least some business needs to be done before the end of the week, which may push active trade to the end of the day Friday. Boxed Beef cut-outs at midday are higher, $2.03 higher (select) and up $0.90 per cwt (choice) with light movement of 75 total loads reported (34 loads of choice cuts, 11 loads of select cuts, 4 loads of trimmings, 7 loads of ground beef).

FEEDER CATTLE:

Mixed feeder cattle trade is seen at midday Friday with prices hovering in a narrow trading range from 30 cents lower to 5 cents higher. The limited trade volume seen through the morning has allowed for moderate price shifts through the end of the week. There may be some additional trade activity moving back into the complex before the end of the session, but there is likely to be limited trade before closing bell.

LEAN HOGS:

Prices have shifted higher and lower through the morning in a wide trading range. Prices are seen 40 to 65 cents per cwt higher as firm renewed buyer support has moved back into the complex. February and April futures are leading the complex higher with firm support near 60 to 65 cents per cwt. The rest of the complex is generally stable with prices seen 30 cents per cwt. These early gains are expected to hold through the end of the session. 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. Pork carcass values added $3.26 per cwt at $75.38 per cwt on 134 loads. Lean hog index for 12/05 is $56.19, down 0.21, with a projected two-day index is $55.96, down 0.23.

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