DTN Midday Livestock Comments 12/14 12:23

DTN Midday Livestock Comments 12/14 12:23 Cattle Futures Higher at Midday Sharp losses develop in cattle trade at midday. The pressure has continued to developed through the complex, pushing the entire complex lower. By Rick Kment DTN Analyst GENERAL COMMENTS: Widespread losses have developed through cattle trade, pushing both live cattle and feeder cattle triple digits lower. Lean hog futures are lower in light trade. Corn prices are higher in light trade. March corn futures are 8 cent higher. Stock markets are lower in light trade. The Dow Jones is 288 points lower while Nasdaq is down 97 points. LIVE CATTLE: Sharp losses have developed through live cattle futures at midday as traders have given back any support seen from late last week with a key reversal developing in the December contract. Even though December and February futures are holding above even number levels of $120 and $125 per cwt at this point, the bearishness of the complex could create some additional long term selling pressure over the next couple of hours. Cash cattle activity remains quiet with no bids or asking prices yet developing. Showlists are mixed with Nebraska and Kansas offerings larger, while Texas and Colorado are showing lower supplies. It may easily be mid to late week before active trade develops. Beef cut-outs at midday are lower, $1.80 lower (select) and down $1.05 per cwt (choice) with light movement of 59 total loads reported (27 loads of choice cuts, 14 loads of select cuts, zero loads of trimmings, 18 loads of ground beef). FEEDER CATTLE: Sharp triple-digit losses have developed through the feeder cattle contracts, offsetting any positive move seen last Thursday and once again drawing bearish tones through nearby and deferred contracts. This is expected to spark additional liquidation through the afternoon, potentially setting up further long term weakness over the next couple of trading sessions. LEAN HOGS: Moderate pressure seen through the cattle complex has spilled over to the lean hog futures complex leaving the market with narrow losses at midday. This is expected to create additional pressure through the rest of the session. Cash prices are lower on the National Direct morning cash hog report. The weighted average price fell $1.60 per cwt to $49.38 per cwt with the range from $45.50 to $50.97 per cwt on 3,316 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 $0.94 per cwt. Lean hog index for 12/10 is at $56.40 down 0.20, with a projected two-day index of $55.98, down 0.42. Rick Kment can be reached at rick.kment@dtn.com (BAS) Copyright 2015 DTN/The Progressive Farmer. All rights reserved.