DTN Midday Livestock Comments 01/15 11:58

DTN Midday Livestock Comments 01/15 11:58 Cattle Futures Hold Limit Losses Friday Limit losses Friday have created additional widespread liquidation through cattle markets. Trade will remain closed Monday, opening Tuesday with expanded limits Tuesday given that limit losses hold through closing bell. By Rick Kment DTN Analyst GENERAL COMMENTS: Cattle futures have turned sharply lower Friday as traders focus on quickly reversing market support seen during the first week of January. Live cattle and feeder cattle are locked in limit-lower trade, and a close at these levels will allow for expanded trading limits when markets open Tuesday morning. Markets will remain closed Monday due to the Martin Luther King Jr. holiday. Corn prices are higher in light trade. March corn futures are 2 cents higher. Stock markets are lower in light trade. The Dow Jones is 472 points lower while Nasdaq is down 172 points. LIVE CATTLE: Nearby live cattle futures are locked in limit down losses following aggressive end of the week liquidation. The pressure seen through the end of the week continues to quickly erode any support which developed through the early part of January, casting many questions over the short and long term direction of the market. Given the extremely wide market range over the last month, the current market shifts continue to remain within the recent range, which so far is not triggering technical market shifts. Cash trade remains silent Friday with traders that did sell expressing joy that they did pull the trigger when they did, and those that did wait, have pulled any offers and bids off the table and try their luck next week. Beef cut-outs at midday are lower, $1.80 higher (select) and down $2.51 per cwt (choice) with light movement of 47 total loads reported (32 loads of choice cuts, 10 loads of select cuts, no loads of trimmings, 6 loads of ground beef). FEEDER CATTLE: Feeder cattle futures have quickly turned lower Friday morning, slipping to limit losses as the market has ran out of gas with buyers unwilling to step back into the complex. Markets will remain closed Monday for the Martin Luther King holiday, which will give traders an extra day to fret as to just how much additional pressure to put into this bearish market trend. Expanded trading limits will likely be in place next week when markets open, given that futures close locked limit lower. LEAN HOGS: Limit losses in cattle trade have drug the lean hog futures lower through the morning as traders have tried their best to keep markets as stable as possible heading into the weekend. The complex is focusing on pressure in both cash markets and light softness in pork values, which is putting the most pressure on front month February futures to the tune of $1 per cwt at midday. This could add to additional late day pressure. Cash prices are lower on the National Direct morning cash hog report. The weighted average price fell $0.62 per cwt to $50.79 per cwt with the range from $48.00 to $53.50 per cwt on 2,045 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 146 loads selling with prices down $0.45 per cwt. Lean hog index for 1/13 is at $55.12 up 0.33, with a projected two-day index of $55.42, up 0.30. Rick Kment can be reached at rick.kment@dtn.com (ES) Copyright 2016 DTN/The Progressive Farmer. All rights reserved.