Wednesday, November 15, 2017

Wednesday Midday Livestock Market Update - Mixed Trade Keeping Trade Volume Sluggish

GENERAL COMMENTS: 
Mixed trade is seen through the livestock futures complex Wednesday morning with traders focusing on narrow to moderate gains in front-month futures being offset by follow-through pressure in deferred contracts. The overall lack of market activity expected through the end of the session will likely keep prices in a narrow to moderate range. Corn prices are higher in light trade. December corn futures are 1/2 cent per bushel higher. Stock markets are lower in light trade. The Dow Jones is 93 points lower while Nasdaq is down 25 points.
LIVE CATTLE:
Live cattle futures remain lightly traded with very little long-term direction developing through the morning. Mixed trade is seen across the complex with narrow gains in nearby contracts offsetting the pressure in the deferred market. Increased market activity is likely to continue to develop through the rest of the week, although there is growing focus on outside market direction during the week. Cash cattle have become more active through the morning Wednesday with light trade seen in the South and parts of Colorado. Prices are listed at $119 per cwt. This is steady with the initial light trade seen Tuesday, but $3 to $4 per cwt below last week's price levels. Bids in Nebraska are seen at $119 live basis and $185 to $190 dressed. The Fed Cattle Exchange Auction report today listed a total of 969 head, with 617 actually sold, 285 head listed as unsold, and 67 head listed as PO (Passed Offer). The state by state breakdown looks like this: KS 237 total head, with 237 head sold at $119.00-$119.25, zero head unsold, zero head listed as PO; NE 543 total head, with 258 head sold at $119.25, 285 head unsold, and zero head listed as PO; TX 189 total head, with 122 head sold at $119.25, zero head unsold, and 67 head listed as PO ($118.00); CO - no cattle reported; IA - no cattle reported; other states - no cattle reported. The delivery date/weighted averages breakdown is as listed: 1-to-9-day delivery: 549 head total, 359 head sold, with a weighted average price of $119.21; 1-17 day delivery 420 head total, 258 head sold, with a weighted average price of $119.25; 10-17 day delivery - no cattle reported; 17-30 day delivery - no cattle reported. Beef cut-outs at midday are lower, $2.14 lower (select) and down $0.59 per cwt (choice) with moderate movement of 83 total loads reported (47 loads of choice cuts, 31 loads of select cuts, no loads of trimmings, 5 loads of ground beef).
FEEDER CATTLE:
Sluggish trade continues to be seen through the feeder cattle complex with the gains seen in front month November futures being offset by moderate pressure still developing in the rest of the complex. The fact that additional cash trade developed is not bringing any stability to the cattle complex, and causing feeder cattle traders to look for additional cuts possible in the near future.
LEAN HOGS:
Mixed price levels continue to be seen in lean hog futures at midday, but the price range is starting to widen slightly as the trading session continues. Front month December contracts are holding gains of 50 cents per cwt while other nearby contracts are trading as much as 90 cents per cwt lower. The pressure in cash and pork values during the morning has limited follow through buying that seemed evident on stepping into most nearby contracts through the morning. Cash prices are lower on the National Direct morning cash hog report. The weighted average price fell $0.45 at $58.19 per cwt with the range from $53.00 to $58.57 on 4,192 head reported sold. Cash prices are lower on the Iowa/Minnesota Direct morning cash hog report. The weighted average price fell $2.47 at $56.26 per cwt with the range from $53.00 to $58.00 on 612 head reported sold. The National Pork Plant Report posted 204 loads selling with cutout values falling $0.79 per cwt. Lean hog index for 11/13 is at $66.68 down $0.32 with a projected two-day index of $66.31, down $0.31.

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