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DTN Midday Livestock Comments          11/30 12:21

   Feeder Cattle Futures Tumble Midmorning    

   Sharp losses developed Monday morning in feeder cattle futures as traders 
continue to adjust positions at the end of the month. This is starting to 
create additional pressure in nearby live cattle trade, eroding nearby futures. 
Hog trade remains sluggish with prices hovering in a narrow range at midday. 

By Rick Kment
DTN Analyst


   Livestock futures are moving lower Monday morning with feeder cattle futures 
leading the downward movement with prices $3 per cwt lower in most contracts. 
This is putting pressure in all cattle markets, and keeping most buyers on the 
sidelines. Lean hog prices are narrowly lower, but still unable to draw buyers 
to the table.  Corn prices are higher in light trade. December corn futures are 
6 cents higher in front month December contracts. Stock markets are lower in 
light trade. The Dow Jones is 47 points lower while Nasdaq is down 23 points.


   Live cattle futures have eroded at midday based on follow-through pressure 
in feeder cattle markets. The lack of additional buyer support on the last 
trading session of November is creating additional concerns of increased 
late-day pressure filtering into the complex before closing bell. Cash cattle 
market activity remains quiet with showlists mixed to generally smaller for the 
week. This is curious given the generally light trade seen last week. Bids and 
asking prices are undeveloped, although packers are expected to be extremely 
short bought going into the week. Beef cut-outs at midday are higher, $0.66 
higher (select) and up $1.19 per cwt (choice) with light movement of 47 total 
loads reported (21 loads of choice cuts, 5 loads of select cuts, 7 loads of 
trimmings, 14 loads of ground beef).


   Triple-digit losses are seen through feeder cattle trade with nearby and 
deferred contracts hovering around $3-per-cwt losses. The lack of support in 
cash markets late last week as well as no additional buyer support in the live 
cattle market is allowing feeder cattle markets to erode in the last day of 
November. The volatility seen in the feeder cattle market could create some 
wide-ranging price swings later in the week, which could quickly bounce back 
from these late-month losses. 


   Light pressure is seen through the lean hog futures market early Monday as 
late-month positioning is backing away from holiday buyer support. Even though 
some additional long-term buyer support continues to be established after 
moving off of seasonal lows, traders are pulling away from prices in December 
lean hog futures, which may allow for soft price levels at the end of the 
trading session. Cash prices are higher on the National Direct morning cash hog 
report. The weighted average price fell $1.02 per cwt to $49.71 per cwt with 
the range from $47.00 to $52.25 per cwt on 2.285 head reported sold. Cash 
prices are unreported due to confidentiality on the Iowa Minnesota Direct 
morning cash hog report. The weighted average price added $0.31 per cwt to 
$52.21 per cwt with the range from $47.00 to $52.25 per cwt on 2.285 head 
reported sold. The National Pork Plant Report reported 114 loads selling with 
prices up $1.29 per cwt. Lean hog index for 11/19 is at $55.52 down 0.35, with 
a projected two-day index of $55.37, down 0.37. 

   Rick Kment can be reached at 


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