DTN Midday Livestock Comments 02/19 12:16

DTN Midday Livestock Comments 02/19 12:16 Hog Futures Turn Sharply Lower Friday Morning Sharp triple-digit losses have quickly developed through April Lean hog futures contracts. Cattle futures remain extremely lightly traded with light pressure developing in feeder cattle markets as traders continue to position nearby contracts in front of the cattle on feed report Friday afternoon. By Rick Kment DTN Analyst GENERAL COMMENTS: Cattle futures are hovering in a narrow directionless range as traders look for cash markets to develop. The expectation that higher cash trade is expected to be seen due to bids developing Friday morning, although trade may not be seen until after the cattle on feed report is released Friday afternoon. Hog futures remain sharply lower as aggressive liquidation is developing in spot April contracts. Corn prices are higher. March corn futures are 1/2 cent higher. Stock markets are mixed in light trade. The Dow Jones is 58 points lower while Nasdaq is up 15 points. LIVE CATTLE: Live cattle futures are stuck in a extremely narrow trading range Friday morning with the overall tone of the market remaining directionless. Front month February futures are holding a narrow 12 cent per cwt gain trading at $135.27 per cwt while other nearby contracts are holding 10 to 30 cent per cwt losses while traders look for direction from both outside markets as well as potential cash market support. Cash cattle activity is starting to become more active with bids starting to increase through the south and the north. Bids are seen at $132 in the South and $208 to $210 in the North, although it is likely that trade may be delayed until after the cattle on feed report. Beef cut-outs at midday are lower, $0.73 lower (select) and down $1.13 per cwt (choice) with light movement of 70 total loads reported (44 loads of choice cuts, 12 loads of select cuts, 4 loads of trimmings, 11 loads of ground beef). FEEDER CATTLE: Trade remains relatively directionless Friday morning across the feeder cattle complex with nearby losses limited to 30 to 50 cents per cwt as traders focus on the upcoming cattle on feed report release while more aggressive pressure is seen in deferred contracts. The concern that any significant shift in placements will impact fall and winter feeder cattle contract movement more is pressuring price levels despite extremely light volume. LEAN HOGS: Initial early morning pressure through the lean hog futures has quickly expanded through the complex as buyer support was nowhere to be found Friday morning. Nearby contracts turned sharply lower, falling $2.35 lower at midday with the concern that additional late week liquidation will continue to add pressure to the entire complex. Cash prices are lower on the National Direct morning cash hog report. The weighted average price fell $0.53 per cwt to $62.22 per cwt with the range from $58.00 to $64.50 per cwt on 2,878 head reported sold. Cash prices lower on the Iowa Minnesota Direct morning cash hog report. The weighted average price fell $0.25 per cwt to $63.83 per cwt with the range from $58.00 to $64.50 per cwt on 905 head reported sold. The National Pork Plant Report reported 182 loads selling with prices down $1.01 per cwt. Lean hog index for 2/17 is at $66.26 up 0.14, with a projected two-day index of $66.40, up 0.14. Rick Kment can be reached at rick.kment@dtn.com (ES) Copyright 2016 DTN/The Progressive Farmer. All rights reserved.