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DTN Midday Livestock Comments          10/09 11:22

   End-of-Week Positioning Leaves Mixed Price Levels                    

   Strong pressure is seen in nearby live cattle futures as traders try to 
adjust positions in front of the weekend. Hog futures and feeder cattle trade 
are drawing light buyer support, helping to bring some stability to the market 
at the end of the week. 

By Rick Kment
DTN Analyst


   Activity Friday in livestock futures is pointing to end of the week 
positioning after the surge in prices seen across the cattle market during the 
week. Very little fundamental activity is being focused upon Friday, as traders 
prepare for the weekend. Even though markets will remain open Monday, the fact 
that Monday is Columbus day and a federal holiday, could keep trade extremely 
light early in the week. Corn prices are lower in light trade. December corn 
futures are 2 cents per bushel lower. Stock markets are higher in light trade. 
The Dow Jones is 17 points higher while Nasdaq is up 15 points.


   Even though there is no additional market activity developing across the 
complex Friday, early market support has eroded at midday, pointing to 
triple-digit losses in nearby futures contracts. Most of the push lower Friday 
is based on end of the week position squaring as traders try to take advantage 
of the $9 per cwt rally in spot month futures. Deferred futures remain lower, 
but in a much narrower range as the focus across the market remains tuned into 
the recent market support. Cash cattle sales are still undeveloped through the 
morning, although active movement is expected in the next couple of hours. Bids 
are seen at $120 in the South and $190 and higher in the North. Asking prices 
are still kind of hard to pin down following the recent surge in futures trade 
over the last few days. Best ideas of where cattle are priced is at $130 in the 
South and likely $203 and higher in the North. Beef cut-outs at midday are 
mixed, $0.47 higher (select) and down $0.64 per cwt (choice) with active 
movement of 101 total loads reported (45 loads of choice cuts, 23 loads of 
select cuts, 9 loads of trimmings, 24 loads of ground beef).


   End of week market cleanup activity has feeder cattle futures mixed with a 
combination of follow-through buying and late week position taking seen at 
midday. The lack of direction through the complex is not surprising or alarming 
to the market following the aggressive market surge through the week. Trade is 
likely to wander in a narrowly mixed range through the rest of the trading 
session with the focus next week being placed on longer term beef market 


   Light to moderate support is holding through lean hog futures Friday morning 
as trades are focusing very little on the direction of cash markets at the end 
of the week, and stepping in to cover short positions, which developed 
Thursday. The focus through the complex is expected to remain more stable 
through the weekend with traders looking for longer-term support through the 
rest of the livestock market in the next couple of weeks. Cash prices are lower 
on the National Direct morning cash hog report. The weighted average price fell 
$0.88 per cwt to $69.82 per cwt with the range from $63.00 to $72.00 per cwt on 
2,435 head reported sold. Cash prices are lower on the Iowa Minnesota Direct 
morning cash hog report. The weighted average price fell $1.28 per cwt to 
$70.48 per cwt with the range from $67.00 to $72.00 per cwt on 330 head 
reported sold. The National Pork Plant Report reported 152 loads selling with 
prices down $0.48 per cwt. Lean hog index for 10/7 is at $74.75 up 0.46, with a 
projected two-day index of $74.84, up 0.09. 

   Rick Kment can be reached at


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