DTN Midday Livestock Comments 12/08 12:00

DTN Midday Livestock Comments 12/08 12:00 Live Cattle Futures Plummet Lower Wednesday Morning Sharp losses have developed through the morning Wednesday with live cattle futures at or near-limit losses at midday. The lack of cash market support as well as inability for futures prices to hold long term support levels has led to additional market liquidation. By Rick Kment DTN Analyst GENERAL COMMENTS: Sharp losses have developed across the cattle complex through midday as traders focus on the lack of support in cash markets as well as technical pressure due to December and February contracts breaking through support levels of $120 and $125 per cwt price levels respectively. This has moved live cattle contracts to limit losses at midday. Corn prices are lower in light trade. December corn futures are 1 cent lower in front month December contracts. Stock markets are lower in light trade. The Dow Jones is 118points lower while Nasdaq is down 86 points. LIVE CATTLE: Live cattle futures have tumbled sharply lower once again at midday with nearby contracts posting limit losses as December contracts have moved below $120 per cwt and February futures have broken below the $125 per cwt price level. This has sparked additional market liquidation through the entire complex. Even though prices may pull off of limit lows through late day trade, the lack of buyer support Wednesday continues to keep the market extremely bearish. Cash bids have developed Wednesday morning in Texas at $119 and Nebraska at $117, both on live basis although asking prices have not yet been seen. Reports of a few cattle sold in Iowa at $185 dressed basis which is $3 lower than Tuesday's price levels continues to put additional pressure on the market. Beef cut-outs at midday are mixed, $0.02 higher (select) and down $0.62 per cwt (choice) with active movement of 139 total loads reported (63 loads of choice cuts, 26 loads of select cuts, 22 loads of trimmings, 28 loads of ground beef). FEEDER CATTLE: Feeder cattle futures have bounced around in a wide trading range through the morning, although losses have held through the entire morning. The pressure in the complex remains aggressive with nearby and deferred contracts holding $4 per cwt losses at midday as limit losses are being tested. The lack of underlying support through the entire complex has created widespread market softness through the entire market complex. LEAN HOGS: Firm support is seen in nearby lean hog futures Wednesday morning as light buyer support has slowly trickled back into the complex. The support has been limited to nearby contracts, as light pressure in deferred futures has been affected by the softness developing across the cattle maret once again. Cash prices are lower on the National Direct morning cash hog report. The weighted average price fell $0.88 per cwt to $50.38 per cwt with the range from $45.50 to $52.50 per cwt on 4,747 head reported sold. Cash prices are lower on the Iowa Minnesota Direct morning cash hog report. The weighted average price fell $0.45 per cwt to $51.74 per cwt with the range from $46.00 to $52.50 per cwt on 144 head reported sold. The National Pork Plant Report reported 289 loads selling with prices down $0.59 per cwt. Lean hog index for 12/7 is at $56.32 up 0.10, with a projected two-day index of $56.66, up 0.34. Rick Kment can be reached at rick.kment@dtn.com (BAS) Copyright 2015 DTN/The Progressive Farmer. All rights reserved.