MORNING LIVESTOCK COMMENTS
Rick Kment, DTN Livestock Analyst
GENERAL COMMENTS: Light to moderate pressure is holding through the livestock complex through early electronic trade Wednesday as traders focus on the lack of buyer support and concern that overall volume may continue to erode heading into the Thanksgiving holiday. Widespread pressure across most markets is also adding to the lack of support in the livestock complex. Corn futures are trading lower in light trade in early trade. Stock markets are lower, with Dow Jones 29 points lower and Nasdaq down 22 points.
LIVE CATTLE: Opening call: Steady to 50 cents lower. Moderate pressure is seen through the complex early Wednesday morning as traders are trying to follow both outside market direction as well as focus on the movement in beef values. The inability to sustain additional cutout price gains could add additional concern to nearby traders over the near future. Cash cattle markets remain sluggish but should start to gain some additional interest as the day continues. Although it may not be close enough to the deadline to either side serious about making a deal, which could push active trade into Friday. Asking prices are expected to remain aggressive, starting somewhere around $174 in the South and $270 and higher in the North. Open interest Tuesday added 1,195 positions (323,090). Spot December shed 3,048 positions (71,144) and February contracts added 2,376 positions (131,427). DTN projected slaughter for Wednesday is 110,000 head.
FEEDER CATTLE: Opening call: 50 cents to $1 lower. Light pressure is expected to develop through early morning trade with moderate pressure holding in the minutes before opening bell of pit trade. The lack of renewed buyer support in live cattle futures is cooling the jets of the feeder cattle complex, which could keep prices subdued through most of the session. Total commitments on Tuesday added 375 positions (46,879). Cash index for 11/17 is 240.09, up 0.90.