DTN Midday Livestock Comments 09/28 11:52

DTN Midday Livestock Comments 09/28 11:52 Narrow Price Ranges Point to Directionless Trade Narrow price swings are seen through the livestock complex through most of the morning. This is allowing most traders to step back and take a longer look at long-term market support, allowing for some calmness to be reestablished following last week's wild price swings. By Rick Kment DTN Analyst GENERAL COMMENTS: Mixed trade is seen through most livestock futures as traders looking for additional longer term direction, and trying to etch out potential market bottoms following last week's pressure. The lack of volatility entering the market Monday, could create more thought-provoking procedures over the next several days, limiting wide price swings. Corn prices are lower in light trade. December corn futures are 3 cents per bushel lower. Stock markets are lower in light trade. The Dow Jones is 256 points lower while Nasdaq is down 108 points. LIVE CATTLE: Live cattle futures remain under pressure with traders focusing on the lack of support redeveloping following Friday's limit higher move. The focus through the complex is once again being placed on deferred contract pressure, which is posting triple-digit losses in late 2016 contracts. Uncertainty about the ability to bring any support to market fundamentals may allow traders to remain defensive through the end of the month. Cash and futures markets seem to be pointing toward each other, with even less market confidence seen as any bearishness in the market has quickly gotten so much worse midweek. Cash cattle activity is still quiet with show lists mixed, generally larger in the South and smaller in the North. Asking prices are undeveloped at this point, but likely to see more direction as the day continues. Beef cut-outs at midday are lower, $0.57 lower (select) and down $0.91 per cwt (choice) with light movement of 84 total loads reported (48 loads of choice cuts, 11 loads of select cuts, 5 loads of trimmings, 20 loads of ground beef). FEEDER CATTLE: Feeder cattle futures are mixed in a moderate range with front month futures holding a lightly traded 50 cent per cwt gain. The rest of the market is backing away from last Friday's gains, creating the indication that traders may continue to focus on additional market softness through the end of the week. LEAN HOGS: Lean hog futures have continued to chop around in a very narrow mixed range through the morning with very little direction able to be found given the moderate to strong outside market pressure. Prices are hovering from 10 cents lower to 15 cents higher, which is keeping most traders on the sidelines waiting for some sort of directional sign to develop through the end of the session. Cash prices are lower on the National Direct morning cash hog report. The weighted average price fell $1.47 per cwt to $67.01 per cwt with the range from $66.89 to $69.50 per cwt on 3,069 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 163 loads selling with prices up $1.10 per cwt. Lean hog index for 9/24 is at $71.81 down 0.02, with a projected two-day index of $71.86, up 0.05. Rick Kment can be reached at rick.kment@dtn.com (BAS) Copyright 2015 DTN/The Progressive Farmer. All rights reserved.