DTN Midday Livestock Comments 02/04 13:14

DTN Midday Livestock Comments 02/04 13:14 Cattle Trade Shifts Lower Midday on Lackluster Interest There was lack of interest in the market Thursday as prices wandered lower in both live cattle and feeder cattle futures. A combination between position-taking and late-week outside market pressure is weighing on cattle markets. By Rick Kment DTN Analyst GENERAL COMMENTS: Cattle futures are mixed at midday with early morning support eroding due to lack of follow-through and uncertainty about buyers willing to step back into the market at the end of the week. Lean hog futures are holding firm as higher cash markets draw buyers back to the table. Corn prices are lower. March corn futures are 2 cents lower. Stock markets are higher in active trade. The Dow Jones is 50 points higher while Nasdaq is up 2 points. LIVE CATTLE: Light gains are holding in live cattle trade through the complex at midday. The pressure in feeder cattle futures and lack of support in live cattle markets earlier in the morning may continue to erode nearby and deferred live cattle futures. Traders are looking for additional longer-term market support through the complex, but without additional volume, it is going to be hard to move prices significantly one way or another. Cash cattle activity is starting to slowly develop with bids seen in the South on Thursday morning at $213 dressed and $138 live. This is well below asking prices of $140 to $142 per cwt. Bids and asking prices in the North are still quiet, although that may change through the afternoon. Trade is still expected to be delayed until sometime Friday. Beef cut-outs at midday are higher, $0.78 higher (select) and up $0.86 per cwt (choice) with light movement of 65 total loads reported (39 loads of choice cuts, 10 loads of select cuts, 10 loads of trimmings, 6 loads of ground beef). FEEDER CATTLE: Feeder cattle futures have moderated to an extremely narrow trading range at midday with prices hovering from 10 cents lower to 12 cents higher in nearby contracts. The lack of follow-through buyer support to hold early market gains has allowed for pressure to develop through the entire cattle complex. This could lead to further market softness in both live cattle and feeder cattle futures through the end of the session, although trade volume is expected to remain extremely light. LEAN HOGS: Lean hog futures are holding light support in nearby contracts with spring and summer contracts holding 12 to 30 cent gains. The focus through the complex continues to be based on the ability to draw additional buying interest through the next several trading sessions and firmer cash market support. Potential for firming pork values based on slower chain speeds at plants across the country due to the recent weather patterns will likely keep short-term buying support firm, but it may limit long-term support. Cash prices are higher on the National Direct morning cash hog report. The weighted average price gained $0.62 per cwt to $61.28 per cwt with the range from $59.18 to $63.00 per cwt on 4,583 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 187 loads selling with prices down $0.82 per cwt. Lean hog index for 2/2 is at $63.30 up 0.79, with a projected two-day index of $63.98, up 0.79. Rick Kment can be reached at rick.kment@dtn.com (ES) Copyright 2016 DTN/The Progressive Farmer. All rights reserved.