DTN Midday Livestock Comments 01/25 12:11

DTN Midday Livestock Comments 01/25 12:11 Pressure Holds Through Cattle Futures Cattle trade under pressure through the morning Monday as there continues to remain uneasiness concerning the lack of direction surrounding the wide price swings seen over the last couple of weeks. By Rick Kment DTN Analyst GENERAL COMMENTS: Moderate losses are holding in cattle trade as trade volume remains light. Little to no new direction is seen through the market, which is keeping traders holding prices lower, but within a sizable market range. Gains are developing in the lean hog futures complex as short covering is the main agenda developing through the complex early Monday. Corn prices are higher. March corn futures are 1/2 cent higher. Stock markets are lower in active trade. The Dow Jones is 60 points lower while Nasdaq is down 19 points. LIVE CATTLE: Moderate losses have slowly developed through the live cattle complex Monday morning, as trade volume has remained extremely sluggish following the weekend break. The lack of bullishness in the cattle on feed report Friday as well as lack of follow through buyer interest from the strong gains last week is focusing on position taking as live cattle contracts wander through the middle of the wide canyon like range seen over the last month. This is creating some increased uncertainty that additional market shifts may continue to develop through the upcoming trading sessions. Cash cattle activity is quiet following the higher cash trade late Friday. It is expected to be midweek before defined asking prices and bids are seen, although packers are expected to remain short bought given the need to gain more cattle for the weeks procurement. Beef cut-outs at midday are lower, $1.12 lower (select) and down $0.87 per cwt (choice) with light movement of 69 total loads reported (40 loads of choice cuts, 10 loads of select cuts, 8 loads of trimmings, 10 loads of ground beef). FEEDER CATTLE: Front-month January feeder cattle futures continue to hold firm gains of 82 cents per cwt at midday, holding prices above $160 per cwt. But the rest of the complex is under pressure with moderate softness developing in nearby contracts as deferred futures are holding the most aggressive losses of $1 per cwt. There continues to be very little trade activity seen through cattle markets Monday morning, which is a contrast from the market surge seen late last week, this could help to draw additional market activity later in the week, as traders try to focus on fundamental market activity. LEAN HOGS: Light support is holding through lean hog futures trade as the complex continues to drive buyer support back into the market early Monday morning. The lack of long term direction still remains a major concern through the entire lean hog complex, although underlying fundamental cash hog market gains could help to slowly build buyer support in nearby lean hog contracts through the next several weeks. Cash prices are lower on the National Direct morning cash hog report. The weighted average price fell $1.23 per cwt to $54.60 per cwt with the range from $54.46 to $56.50 per cwt on 3,161 head reported sold. Cash prices are lower on the Iowa Minnesota Direct morning cash hog report. The weighted average price fell $0.56 per cwt to $55.99 per cwt with the range from $55.50 to $56.50 per cwt on 289 head reported sold. The National Pork Plant Report reported 181 loads selling with prices down $0.03 per cwt. Lean hog index for 1/21 is at $57.84 up 0.64, with a projected two-day index of $58.37, up 0.53. Rick Kment can be reached at rick.kment@dtn.com (ES) Copyright 2016 DTN/The Progressive Farmer. All rights reserved.