DTN Midday Livestock Comments 01/14 12:03

DTN Midday Livestock Comments 01/14 12:03 Triple-Digit Losses Hold in Feeder Cattle Markets Lack of buyer support has allowed triple-digit losses to hold through feeder cattle futures at midday. Despite pulling prices well off of initial morning lows, strong pressure is expected to hold through the rest of the session. By Rick Kment DTN Analyst GENERAL COMMENTS: Cattle futures have moved sharply lower based on commercial market pressure developing through both live cattle and feeder cattle markets. Even though strong losses continue to hold across the complex, current pressure remains well below initial losses, as increased volume stepped into the market, some stability also developed through cattle markets. Corn prices are slightly higher in light trade. March corn futures are 3/4 cent higher. Stock markets are higher in light trade. The Dow Jones is 204 points higher while Nasdaq is up 64 points. LIVE CATTLE: Strong losses are seen through the morning Thursday morning in all nearby live cattle futures based on trader inactivity more than any other factor seen through the market. Firm beef values have not been able to draw much support to the market, as traders are looking for very little market support and the ability for traders to look for additional positioning opportunities following the recent market moves earlier in the week. Cash cattle trade has become active in the South with trade at $134, which is $1 higher than last week. It is expected that this will likely be enough to finish up needs for the week in the area. Northern trade continues to trickle into the market at $209 to $210, steady with levels previous in the week. The light trade may not pick up intensity through the day, and may drag into Friday at this pace. Beef cut-outs at midday are higher, $1.27 higher (select) and up $0.24 per cwt (choice) with light movement of 60 total loads reported (32 loads of choice cuts, 12 loads of select cuts, 7 loads of trimmings, 9 loads of ground beef). FEEDER CATTLE: Triple-digit gains continue to hold across the feeder cattle complex at midday, even though the ability to pull additional volume back into the market through the morning has pulled current losses $1 to $2 per cwt off of early losses. The lack of cash market support seen through the market seems to have caused some trade uncertainty through the entire futures complex with traders trying to find some stability through the middle of January. The challenge with the wide price shift between mid-December and Early January is that it created a $23 trading range in which prices can wander without setting any significant technical direction. LEAN HOGS: Lean hog futures have shaken off early directionless trade as buyers have slowly wandered back into the complex Thursday morning. The move higher has been led by the spot month February contract which is holding a 60 cent per cwt gain as buyers have been able to push prices above the $62 per cwt price level, and hold this level through midday. There seems to be very little aggressive market support in the entire complex, but traders focused on the ability that packers will continue to dig deeper in their pockets in order to access needed hog numbers through the end of the month. Cash prices are lower on the National Direct morning cash hog report. The weighted average price fell $1.55 per cwt to $50.53 per cwt with the range from $47.00 to $53.00 per cwt on 3,405 head reported sold. Cash prices are lower on the Iowa Minnesota Direct morning cash hog report. The weighted average price fell $1.67 per cwt to $51.64 per cwt with the range from $47.00 to $53.00 per cwt on 630 head reported sold. The National Pork Plant Report reported 228 loads selling with prices up $1.46 per cwt. Lean hog index for 1/12 is at $54.79 up 0.58, with a projected two-day index of $55.12, up 0.33. Rick Kment can be reached at rick.kment@dtn.com (ES) Copyright 2016 DTN/The Progressive Farmer. All rights reserved.