DTN Midday Livestock Comments 01/20 12:13

DTN Midday Livestock Comments 01/20 12:13 Cattle Futures Turn Sharply Lower Limit losses have developed in live cattle and feeder cattle futures as traders have quickly backed away from early week support. The sharp outside market pressure developing Wednesday is also creating increased widespread market pressure through the entire cattle market. By Rick Kment DTN Analyst GENERAL COMMENTS: Cattle futures are trading at or near limit losses midday Wednesday. This is creating further concern through the entire market with buyers focusing on price pressure unable to find support from Tuesday's rally. Corn prices are steady. March corn futures are unchanged. Stock markets are lower in active trade. The Dow Jones is 454 points lower while Nasdaq is down 117 points. LIVE CATTLE: Limit losses have developed in nearby live cattle futures following lack of support through the entire cattle complex. There remains little support during the entire futures market despite the bounce in beef values. Trade volume remains extremely light as the focus on market activity is going to be based on the ability to draw traders back into the complex while outside markets remain extremely bearish. Cash cattle trade remains inactive with most activity likely to be pushed off until the end of the week at this point unless significant basis opportunities exist. A few bids have developed in the North at $202, but at this point, no activity has been seen. Beef cut-outs at midday are higher, $1.02 higher (select) and up $0.76 per cwt (choice) with light movement of 73 total loads reported (39 loads of choice cuts, 17 loads of select cuts, no loads of trimmings, 18 loads of ground beef). FEEDER CATTLE: Sharp morning losses have continued to hold across feeder cattle markets with losses flirting with limit losses through most of the morning. As traders held prices higher Tuesday, the lack of follow through support midweek seemed to create aggressive pressure into the market. This may bring even more softness into the market at the end of the week, although technically the feeder cattle continues to trade in a wide range which was established between the middle of December and January. LEAN HOGS: Lean hog futures have remained mixed in a narrow to moderate range through the morning as traders seem content to focus on the moderate trading range given the wide shifts in the cattle complex. Front month February futures are holding 30 cent gains, while the rest of the complex is trading moderately lower in extremely sluggish trade. Cash prices are lower on the National Direct morning cash hog report. The weighted average price fell $0.06 per cwt to $53.85 per cwt with the range from $48.00 to $56.50 per cwt on 5,351 head reported sold. Cash prices are higher on the Iowa Minnesota Direct morning cash hog report. The weighted average price added $0.79 per cwt to $53.85 per cwt with the range from $48.00 to $56.50 per cwt on 2,505 head reported sold. The National Pork Plant Report reported 301 loads selling with prices up $1.19 per cwt. Lean hog index for 1/18 is at $56.25 up 0.42, with a projected two-day index of $56.77, up 0.52. Rick Kment can be reached at rick.kment@dtn.com (ES) Copyright 2016 DTN/The Progressive Farmer. All rights reserved.