DTN Midday Livestock Comments 03/07 11:33

DTN Midday Livestock Comments 03/07 11:33 Livestock Futures Hold Moderate Losses Monday Morning Cattle futures pulled back from strong triple-digit losses during early trade, but the general market pressure continues to hold through the entire livestock complex. This may continue to limit buyer support through the end of the session. By Rick Kment DTN Analyst GENERAL COMMENTS: Livestock futures remain under pressure midday Monday with prices moderating following sharp early losses across the cattle complex. Overall volume in both cattle and hog trade remains extremely light which may continue to market direction through the rest of the session. Cash activity is not expected to be seen through the first part of the week. Corn prices are higher. May corn futures are 2 cents higher. Stock markets are higher in light trade. The Dow Jones is 55 points higher while Nasdaq is up 5 points. LIVE CATTLE: Live cattle losses have eroded at midday with trade volume remaining sluggish through most of the trading session. The focus through the complex continues to be based unsettled cash market moves late last week despite the lack of overall volume in the market. Deferred contracts are holding losses of 12 to 20 cent losses while more aggressive losses are seen in nearby contracts although losses are limited to 40 to 60 cents per cwt. The ability to draw futures back from the triple digit losses seen initially when markets opened seems to help stabilize the market midday Monday. Cash cattle activity remains undeveloped which is typical for a Monday as show list are expected to remain larger given the light trade late last week. Asking prices are expected to begin around $138 to $140 in the South and $218 and higher in the North. Beef cut-outs at midday are higher, $1.89 higher (select) and up $0.17 per cwt (choice) with light movement of 54 total loads reported (31 loads of choice cuts, 10 loads of select cuts, no loads of trimmings, 12 loads of ground beef). FEEDER CATTLE: Feeder cattle futures are mixed in a moderate to wide range after moving back from strong triple digit losses early in the session. The firm gains developing in deferred contracts continue to draw buyers back into the complex. March futures are still limiting any additional buyer support into nearby contracts, although the tone of the market remains unsettled and may continue that way through most of the session. LEAN HOGS: Moderate pressure is developing through nearby lean hog futures at midday following lackluster early pressure with buyers quickly backing away from initially mixed price moves Monday morning. April futures are holding 70 cent losses at midday, but have pulled away from triple digit session lows due to seller pressure backing away from the complex. This could allow prices to wander back and forth through a wide range through the rest of the session. The rest of the complex is contained in a narrow range. Cash prices are lower on the National Direct morning cash hog report. The weighted average price fell $0.12 per cwt to $61.77 per cwt with the range from $55.00 to $64.00 per cwt on 5,022 head reported sold. Cash prices unreported due to confidentiality on the Iowa Minnesota Direct morning cash hog report. The National Pork Plant Report reported 166 loads selling with prices up $0.96 per cwt. Lean hog index for 3/3 is at $66.90 down 0.01, with a projected two-day index of $66.29, down 0.29. Rick Kment can be reached at rick.kment@dtn.com (ES) Copyright 2016 DTN/The Progressive Farmer. All rights reserved.