DTN Midday Livestock Comments 02/05 12:10

DTN Midday Livestock Comments 02/05 12:10 Cattle Futures Hold Sharp Midday Losses Aggressive sharp losses quickly developed through feeder cattle markets late Friday morning. The focus on late week position squaring and lack of additional market news is creating some uncertainty through the complex. By Rick Kment DTN Analyst GENERAL COMMENTS: Cattle futures have turned sharply lower at midday following triple digit losses across all feeder cattle futures and nearby live cattle contracts. Lean hog trade remains stuck in narrowly mixed directionless trade, which will likely keep markets in the sideways pattern through the end of the week. Corn prices are lower. March corn futures are 2 cents lower. Stock markets are lower in active trade. The Dow Jones is 192 points higher while Nasdaq is down 117 points. LIVE CATTLE: The narrow losses seen early Friday has broken away from the lack of activity and has posted triple digit losses in April and June futures. The focus through the complex are leading the complex lower which continue to bring even more uncertainty to the complex which has tested short term resistance levels through much of the week. At this point, the market pullback is not yet determined if it is based on position squaring, or a longer term market shift that could continue when traders return next week. Cash cattle markets are slow to develop Friday morning, although bids are being restated through the morning. Bids in the South are seen at $136 to $138 while at $210 in the North. Asking prices are holding at $142 in the South and $215 and higher in the North. It is expected to be sometime through the afternoon when active trade develops. Beef cut-outs at midday are lower, $0.03 higher (select) and down $0.53 per cwt (choice) with light movement of 63 total loads reported (33 loads of choice cuts, 13 loads of select cuts, 2 loads of trimmings, 15 loads of ground beef). FEEDER CATTLE: The initial light pressure seen through the complex has quickly expanded at midday with losses quickly expanding following the pressure in deferred contracts. November futures are leading the market lower based on light trade activity, but all contracts are holding losses between $1.80 and $3 per cwt lower at midday, which could expand to even further losses before markets close at the end of the week. LEAN HOGS: Lean hog futures are mixed in a narrow trading range given the lack of direction seen through the entire morning. The entire complex continues to focus on the lack of direction in cash markets as well as interest on end of week position taking available through the end of the week. There may be some additional market support developing in front month futures in the last hour of trade, although buyers may continue to push trade off until early next week. Cash prices are unreported on the National Direct morning cash hog report. Cash prices are unreported due to confidentiality on the Iowa Minnesota Direct morning cash hog report. The National Pork Plant Report is delayed Friday. Lean hog index for 2/3 is at $63.98 up 0.68, with a projected two-day index of $63.30, up 0.32. Rick Kment can be reached at rick.kment@dtn.com (ES) Copyright 2016 DTN/The Progressive Farmer. All rights reserved.