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DTN Midday Livestock Comments          11/22 11:53

   Triple-Digit Gains Flood Cattle Futures 

   Strong pre-holiday buyer support has quickly moved into the cattle market as 
traders continue to spark longer-term buyer interest in all livestock trade.  

By Rick Kment
DTN Analyst

GENERAL COMMENTS: 

   Sharp triple-digit gains have continued to move into the cattle complex as 
markets have posted strong upward market support over the past two consecutive 
days. This is helping to spark some additional longer-term interest into the 
market and potentially setting market lows in nearby contracts. Corn prices are 
higher in light trade. December corn futures are 1/4 cents per bushel higher. 
Stock markets are mixed in light trade. The Dow Jones is 76 points lower while 
Nasdaq is up 2 points.

   LIVE CATTLE:

   Strong triple-digit support has quickly moved through the nearby live cattle 
complex with traders focusing on the overall strength that started to redevelop 
Tuesday. This entire week is a little odd given the Thanksgiving day holiday, 
and overall limiting trade volume in all contracts. Firm follow through buying 
has helped to bring some traders aggressively back into the market as they 
focus on longer-term support and the potential to regain losses seen in early 
November. Trade is expected to remain sluggish through the end of the session 
although the focus on previous gains may help to solidify nearby and deferred 
market buying activity. Cash cattle activity remains sluggish with no trade 
developing at this time due to the light to moderate trade already seen this 
week. It is expected that most activity, especially in the South has already 
been put to bed. This could leave markets in the current range with bids at 
$118 to $119 live and $188 to $190 dressed. Sales at these levels would be 
steady to $1 per cwt higher than Tuesday, but steady to $1 lower than week ago 
levels. Activity on the Fed Cattle Exchange Auction remained quiet also through 
the morning with a total of 955 head offered, although no sales were reported 
on the Auction. A total of 411 head were listed as Passed over. All of the 
passed over cattle were in Kansas. Beef cut-outs at midday are higher, $0.26 
higher (select) and up $0.29 per cwt (choice) with active movement of 118 total 
loads reported (52 loads of choice cuts, 31 loads of select cuts, 16 loads of 
trimmings, 19 loads of ground beef). 

   FEEDER CATTLE:

   Strong buying is seen in all cattle markets Wednesday morning. The focus on 
light trade limiting overall market resistance is helping to secure 
triple-digit gains across all markets. This overall support in the complex may 
bring additional volatility Friday when the few traders willing to move back 
into the market on the shortened trading session trickle into the market.  

   LEAN HOGS:

   Strong midday gains are seen through the lean hog futures complex with 
traders focusing on the overall buyer support seen across the complex heading 
into the Thanksgiving holiday. Although markets will be open on a shortened 
basis Friday, most traders are likely to exit the market and not return until 
next week. Firm gains are holding 70 to 85 cent support in nearby contracts, 
helping to offset the losses seen Tuesday. Cash prices are higher on the 
National Direct morning cash hog report. The weighted average price added $0.05 
at $56.64 per cwt with the range from $50.00 to $57.00 on 6,881 head reported 
sold. Cash prices are higher on the Iowa/Minnesota Direct morning cash hog 
report. The weighted average price added $0.03 at $56.88 per cwt with the range 
from $53.00 to $57.00 on 5,146 head reported sold. The National Pork Plant 
Report is unavailable at this time due to submission problems. Lean hog index 
is unavailable at this time. 

   Rick Kment can be reached at rick.kment@dtn.com 


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