DTN Midday Livestock Comments 10/16 12:01
Livestock Futures Stuck in Narrow Range Monday Morning
Narrow trading ranges are holding in livestock futures with the exception of
front-month lean hog futures trade. Increased additional market direction is
expected through the rest of the week.
By Rick Kment
Livestock futures are lightly traded with strong buyer activity flooding
into front month lean hog futures contracts, while the rest of the livestock
market remains stuck in a narrow range. Light trade is expected to keep traders
on the sidelines through most of the session. Corn prices are lower in light
trade. December corn futures are 2 cents lower. Stock markets are higher in
light trade. The Dow Jones is 38 points higher while Nasdaq is up 7 points.
Live cattle futures are mixed in a narrow range in all contracts except
front month October futures. October contracts are holding a 75-cent-per-cwt
loss, with traders continue to roll into December and February contract months.
The remainder of nearby and deferred futures are futures are stuck in
directionless ranges as traders focus on the lack of movement in feeder cattle
trade and sluggish outside market moves. Cash cattle trade is quiet with show
list distribution the main order of business for the day. Bids and asking
prices remain undeveloped at this point and likely will be quiet all day. Beef
cut-outs at midday are higher, $0.77 higher (select) and up $0.51 per cwt
(choice) with light movement of 55 total loads reported (22 loads of choice
cuts, 11 loads of select cuts, 15 loads of trimmings, 7 loads of ground beef).
Feeder cattle futures are quietly traded as volume is still sluggish Monday
morning in all cattle markets. October contracts are holding 35 cent gains,
although the remainder of contracts are stuck in a narrow 20 cent range with
lackluster activity expected to develop through the rest of the session. This
could limit commercial buyer interest early in the week.
Light early support in lean hog futures has sparked additional strong buyer
support in nearby lean hog futures. December futures have posted $1.02 per cwt
gains at midday with prices moving above $63.22 per cwt. This is creating
widespread support in all contracts, although most of the volume has been
limited to nearby contracts. Cash prices are higher on the National Direct
morning cash hog report. The weighted average price higher $0.48 at $58.07 per
cwt with the range from $53.00 to $60.00 on 5,971 head reported sold. Cash
prices higher on the Iowa/Minnesota Direct morning cash hog report. The
weighted average price added $0.73 at $59.06 per cwt with the range from $53.00
to $60.00 on 3,293 head reported sold. The National Pork Plant Report reported
145 loads selling with prices adding $0.61 per cwt. Lean hog index for 10/12 is
at $59.51 up $0.39 with a projected two-day index of $60.24, up 0.73.
Rick Kment can be reached at email@example.com
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