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DTN Midday Livestock Comments          11/24 12:09

   Cattle Futures Shift Lower Tuesday Morning                           

   Cattle markets have moved sharply lower Tuesday morning due to light trade 
volume creating volatile pre-holiday market swings. Trade shifts are likely to 
continue to be seen through most of the week, although trade interest is likely 
to slow as the week continues. 

By Rick Kment
DTN Analyst


   Cattle futures moved sharply lower Tuesday morning as traders have quickly 
pulled back from early week support. The light trade activity during the week 
will continue to leave markets volatile. Hog support remains light, but midday 
gains continue to be seen in nearby contracts based on firming fundamentals. 
Corn prices are higher in light trade. December corn futures are 2 cents higher 
in front month December contracts. Stock markets are higher in light trade. The 
Dow Jones is 48 points higher while Nasdaq is up 4 points.


   Strong gains have been seen through the morning in live cattle futures as 
traders are posting strong reactions to the market shifts seen Monday. The 
light trade volume is creating intense yo-yo action in nearby and deferred 
contracts, but nearby futures is being affected the most by this market swing. 
Traders are focusing on increased trade activity which continues to focus on 
the light volume through the entire holiday week and lack of overall market 
direction. Cash cattle markets are still quiet Tuesday with bids still 
undefined. A few asking prices are starting to be seen in the South at $132, 
although at this point this is not going to create much movement in the market. 
Both sides would like to wrap things up before Thursday in order not to step 
back into the market Friday after the Holiday, but it will see if that will be 
able to be done. Beef cut-outs at midday are mixed, $0.23 lower (select) and up 
$0.18 per cwt (choice) with moderate movement of 96 total loads reported (42 
loads of choice cuts, 22 loads of select cuts, 1 load of trimmings, 31 loads of 
ground beef).


   Triple-digit losses continue to hold in feeder cattle futures as traders 
focus on the lack of volume during the week creating increased market 
volatility across the entire cattle complex. The feeder cattle market is 
tightly grouped between $1.20 and $1.35 per cwt lower, as additional market 
shifts are likely possible before closing bell. 


   Firm midday support has developed through the morning with December 
contracts posting 60 cent gains as early pressure has eroded and traders have 
stepped back into the market. The focus on moving prices higher and advancing 
on seasonal gains through the end of the month continue to draw light trade 
back into the market even though overall volume remains sluggish ahead of the 
holiday break. Cash prices are lower on the National Direct morning cash hog 
report. The weighted average price fell $1.25 per cwt to $49.64 per cwt with 
the range from $47.00 to $51.97 per cwt on 4,643 head reported sold. Cash 
prices are unreported due to confidentiality on the Iowa Minnesota Direct 
morning cash hog report. The National Pork Plant Report reported 245 loads 
selling with prices up $0.01per 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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