DTN Midday Livestock Comments          10/17 11:48

   Strong Losses Develop Midweek 

   Pressure is seen in all livestock futures trade. This has focused morning 
selling pressure on nearby lean hog futures with spot month contracts trading 
$1.70 per cwt lower. The lack of buyer interest in the market is expected to 
add to underlying weakness through the entire complex.

By Rick Kment
DTN Analyst

   Firm pressure has been seen through the entire livestock complex through the 
morning with triple-digit losses seen in lean hog and feeder cattle trade. The 
lack of buyer support returning to the complex could spark some additional 
underlying through the remainder of the week. Corn markets are lower in light 
trade. December corn futures are 1/2 cent lower. Stock markets are mixed in 
light trade. The Dow Jones is 1 point higher while Nasdaq is down 1 point.

   LIVE CATTLE:

   Mixed trade is seen midday Wednesday with October futures holding a 17 cent 
per cwt gain, while all other contracts are firmly lower. The underlying 
pressure that is developing in feeder cattle trade has sparked some additional 
weakness through the entire cattle complex. Limited market activity is expected 
to be seen through the end of the session, with prices likely to hold current 
trading ranges. Cash cattle interest remains sluggish with a few bids seen in 
the North. Live bids are seen at $110 while dressed bids are $172 to $174 per 
cwt. Asking prices are still hard to firmly pin down, but have been heard 
around $114 live basis in the South. Active trade is likely to not develop 
until late in the week. Boxed Beef cut-outs at midday are mixed, $1.02 lower 
(select) and up $0.22 per cwt (choice) with moderate movement of 103 total 
loads reported (55 loads of choice cuts, 19 loads of select cuts, 13 loads of 
trimmings, 15 loads of ground beef).

   FEEDER CATTLE:

   October feeder cattle futures are holding a single-digit gain at midday, 
although strong losses near $1 per cwt are seen through the rest of the 
complex. This is adding to the overall uncertainty through the complex, with 
traders looking for additional direction through the entire cattle market. 
January through April futures are holding triple digit losses with the overall 
pressure focusing on general market weakness through the entire feeder cattle 
complex. 

   LEAN HOGS:

   Triple-digit losses have quickly moved into nearby lean hog futures with 
December contracts setting the tone for the lower moving markets with prices 
$1.70 per cwt lower. Traders still remain focused on outside market direction 
and recent shifts in fundamentals. This could add even more weakness later in 
the week. Cash prices are lower on the National Direct morning cash hog report. 
The weighted average price is $0.52 lower at $59.40 per cwt with the range from 
$53.00 to $61.00 on 6,425 head reported sold. Cash prices are lower on the 
Iowa/Minnesota Direct morning cash hog report. The weighted average price is 
$1.94 lower at $57.82 per cwt with the range from $55.00 to $60.50 on 1,255 
head reported sold. The National Pork Plant Report posted 244 loads selling on 
the morning report. Pork carcass values fell $1.37 per cwt at $79.50 per cwt. 
Lean hog index for 10/15 is at $68.59 down $0.16 with a projected two-day index 
of $68.17, down $0.42.

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


(SK)

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