DTN Midday Livestock Comments 09/04 12:07

DTN Midday Livestock Comments 09/04 12:07 Cattle Futures Tumble Lower Strong losses have redeveloped through cattle trade, which is once again pointing to long-term price support levels being challenged as traders ready positions for the extended holiday weekend. By Rick Kment DTN Analyst GENERAL COMMENTS: Cattle futures have turned sharply lower at midday with the support seen Thursday quickly evaporating as traders continue to focus on long-term lows and lack of fundamental support across the entire cattle market. Lean hog futures are mixed in a very narrow range with traders looking for increased market direction once markets open next week. Corn prices are higher in light trade. September corn futures are 1 cent per bushel higher. Stock markets are lower in light trade. The Dow Jones is 292 points lower while Nasdaq is down 56 points. LIVE CATTLE: Narrow losses early in Friday's trading session have expanded to full market pressure, with all contracts holding triple-digit losses. The lack of support across the complex is increasingly evident, as support seen Thursday quickly discounted as the market continues to struggle to hold front month prices of $140 per cwt. Trade volume is expected to remain sluggish through closing bell, but the tone of the market appears to be set as traders continue to push the market near long-term lows. Cash cattle trade is starting to develop in the South at $143 per cwt. This is $3 per cwt lower than last week's level, and will likely set the tone for any additional trade that needs to be done before the end of the week. It is expected that both sides are trying as hard as they can to get business wrapped up sooner than later, so they can start their holiday weekend. Beef cut-outs at midday are mixed, $0.71 higher (select) and down $0.18 per cwt (choice) with light movement of 63 total loads reported (35 loads of choice cuts, 20 loads of select cuts, 4 loads of trimmings, 4 loads of ground beef). FEEDER CATTLE: Just when feeder cattle futures needed to lock in additional buyer support following the move higher Thursday, weakness has quickly and aggressively developed, moving prices sharply lower at midday. The softness through the complex has more to do with lack of longer-term direction in the market, and traders focusing on the light trade volume seen Friday. Even though front month futures appear to be holding onto $201 per cwt price levels, the general market softness is extremely obvious heading into the long holiday weekend. LEAN HOGS: Narrow trading ranges are holding through the lean hog futures complex with traders confining all activity through the morning between 20 cents lower and 20 cents higher. The softness in cash values in morning reports is having very little impact in nearby or deferred ethanol contracts. It is likely that trade will coast into closing bell as traders are clearly focused long term direction which may develop next week. Cash prices are lower on the National Direct morning cash hog report. The weighted average price fell $0.32 per cwt to $67.74 per cwt with the range from $63.50 to $68.50 per cwt on 1,449 head reported sold. Cash prices are lower on the Iowa Minnesota Direct morning cash hog report. The weighted average price fell $0.65 per cwt to $67.77 per cwt with the range from $63.50 to $68.50 per cwt on 1,422 head reported sold. The National Pork Plant Report reported 147 loads selling with prices falling $0.25 per cwt. Lean hog index for 9/2 is at $76.39 down 0.49, with a projected two-day index of $75.54, down 0.85. Rick Kment can be reached at rick.kment@dtn.com (BAS) Copyright 2015 DTN/The Progressive Farmer. All rights reserved.