DTN Midday Livestock Comments 02/11 12:00

DTN Midday Livestock Comments 02/11 12:00 Cattle Futures Hold Triple-Digit Losses Thursday Triple-digit losses through live cattle and feeder cattle are holding Thursday midday, based on pressure in cash markets and widespread outside financial pressure. Despite the strong pressure, cattle futures have moved back significantly from session lows, as traders try to bring some sense of stability to the market. By Rick Kment DTN Analyst GENERAL COMMENTS: Triple-digit losses continue to hold across cattle trade at midday, although current losses have moved significantly off of session lows which touched limit lows in live cattle trade Thursday morning on concerns of outside market moves. The lack of fundamental market support continues to back away from midweek market support in cattle trade, while lean hog futures are rebounding from losses seen Wednesday. Corn prices are higher. March corn futures are 1 cent higher. Stock markets are lower in active trade. The Dow Jones is 326 points lower while Nasdaq is down 41 points. LIVE CATTLE: Live cattle futures have cut early losses in half, but still remain under significant pressure as traders focus on weakening fundamentals and lower cash cattle trade. Nearby live cattle futures are holding losses of $1.30 to $1.50 per cwt with commercial selling holding nearby contracts just above $130 per cwt. Cash cattle activity has developed through the morning with trade in the South likely to be essentially wrapped up for the week with trade seen at $133. This is $3 per cwt lower than last week and $1 lower than trade Wednesday. A few deals are starting to trickle in in the North at $206, which would be around $4 per cwt lower than last week, but mostly bids are still holding at this level. Trade may be done by the end of the day, given the defensiveness of futures markets and outside market pressure. Beef cut-outs at midday are mixed, $1.13 higher (select) and down $0.99 per cwt (choice) with moderate movement of 102 total loads reported (49 loads of choice cuts, 8 loads of select cuts, 9 loads of trimmings, 36 loads of ground beef). FEEDER CATTLE: Moderate to strong pressure has been evident through the cattle complex through the entire morning, although the extend of the market softness has changed significantly through the trading session. Aggressive losses which pushed live cattle futures to limit losses early in the session, appeared to test limit losses in the feeder cattle market also, but the inability to draw additional seller activity into the market at midday quickly brought the market back to a more moderate range with prices hovering between $1 and $2 per cwt lower at midday. The lack of support in cash markets continues to limit any additional support from stepping in from the sidelines. LEAN HOGS: Moderate to strong short covering has quickly swooped into the lean hog complex through the Thursday session, regaining losses which developed Wednesday, and creating additional market support through the rest of the trading session. Most of trader's attention is squarely being placed on the pressure in cattle trade and outside markets, which is allowing for buyers to easily step back into the hog complex without much fanfare, creating market stability. Cash prices are lower on the National Direct morning cash hog report. The weighted average price fell $0.41 per cwt to $61.90 per cwt with the range from $61.00 to $63.50 per cwt on 3,602 head reported sold. Cash prices are higher on the Iowa Minnesota Direct morning cash hog report. The weighted average price fell $0.03 per cwt to $63.11 per cwt with the range from $62.50 to $63.50 per cwt on 1,270 head reported sold. The National Pork Plant Report reported 230 loads selling with prices down $1.51 per cwt. Lean hog index for 2/9 is at $65.29 up 0.40, with a projected two-day index of $65.60, up 0.31. Rick Kment can be reached at rick.kment@dtn.com (ES) Copyright 2016 DTN/The Progressive Farmer. All rights reserved.