DTN Midday Livestock Comments 12/07 12:14

DTN Midday Livestock Comments 12/07 12:14 Triple-Digit Losses Hold Across Cattle Futures Cattle trade pushed sharply lower early Monday morning with the pressure extending front-month live cattle futures to daily trading limits early in the session. Strong pressure has continued through the entire market all morning, leaving traders searching for additional direction. Cattle markets remain sharply lower with early limit losses in live cattle futures setting the tone of the aggressive triple-digit losses through the entire complex. Lean hog futures remain lower as traders look for increased direction from cash markets, which are also struggling for stability. Corn prices are lower in light trade. December corn futures are 7 cents higher in front-month December contracts. Stock markets are lower in light trade. The Dow Jones is 185 points lower while Nasdaq is down 55 points. By Rick Kment DTN Analyst GENERAL COMMENTS: Live cattle futures are trading sharply lower Monday morning, although prices have backed away from limit losses seen early in the session. The initial pressure in the complex created additional widespread softness through the entire complex as traders continue to look for long-term market support. Cash markets are quiet with show lists mixed early in the week as bids and asking prices have yet to develop. The pressure in futures trade is expected to keep cash markets defensive through the early part of the week. Beef cutouts at midday are mixed, $0.97 lower (select) and up $0.10 per cwt. (choice) with moderate movement of 91 total loads reported (30 loads of choice cuts, 28 loads of select cuts, 18 loads of trimmings, 15 loads of ground beef). FEEDER CATTLE: Even though feeder cattle futures have backed away from session lows at midday and prices are not testing limit losses like what happened after the opening bell, sharp losses between $3 and $3.50 per cwt. are still holding through the complex. Some additional market movement is expected through the end of the session, which may lead to additional soft price shifts within the current range over the next couple hours of trade. This could leave markets open for additional market volatility through the rest of the week as the bearish tone set early Monday could create additional liquidation through the complex. LEAN HOGS: Nearby lean hog futures continue to trade $1 to $1.50 per cwt. lower through the entire morning as the aggressive pressure in the cattle complex combined with late-week pressure last week in nearby lean hog futures is creating additional uncertainty about drawing buyers back to the market through the end of the year. Deferred futures are posting moderate losses as traders look for increased market direction with prices still nearly $20 per cwt above front-month futures as traders look for demand to firm well into the summer of 2016. Cash prices are lower on the National Direct morning cash hog report. The weighted average price fell $1.20 per cwt. to $50.74 per cwt. with the range from $50.48 to $52.50 per cwt. on 3,322 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 190 loads selling with prices down $0.31 per cwt. The lean hog index for 12/3 is at $56.30 down 0.17, with a projected two-day index of $56.22, down 0.22. Rick Kment can be reached at rick.kment@dtn.com (BAS) Copyright 2015 DTN/The Progressive Farmer. All rights reserved.