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
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.
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).
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.
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 firstname.lastname@example.org
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