DTN Midday Livestock Comments 03/08 13:44

DTN Midday Livestock Comments 03/08 13:44 Cattle Futures Pulled Back from Strong Losses in Early Trade Strong gains are holding across the cattle complex with an aggressive shift in buyer support took place in April live cattle futures midmorning Tuesday, which sparked additional widespread buyer activity. Lean hog futures are mixed in a narrow trading range with traders looking for additional market direction through the rest of the week. By Rick Kment DTN Analyst GENERAL COMMENTS: 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. Strong buyer support has quickly flooded into nearby cattle futures Tuesday morning, helping to spark renewed interest through the complex. Trade volume remains sluggish through the market, although the overall tone of the market aggressive at midday. Hog futures are mixed in a narrow range with traders unwilling to stray too far away from unchanged price levels at this point. Corn prices are higher. May corn futures are 2 cents higher. Stock markets are lower in light trade. The Dow Jones is 34 points lower while Nasdaq is down 18 points. LIVE CATTLE: Early losses in live cattle futures have been quickly offset by strong buyer support which has flooded the market, bringing about triple-digit market gains to front month April futures. April futures are holding $1.40 per cwt gains, with prices over $1.37 per cwt at midday. This support is helping to hold moderate buyer support through the rest of the complex even though volume in the rest of the complex remains extremely light. Cash cattle markets remain inactive Tuesday morning with bids still undeveloped and may remain that way until the second half of the week. At this point, asking prices are still quiet as feeders are focusing on the short bought status of packers to create a more aggressive appetite through the market, even though trade may not be seen until Thursday or Friday once again. Beef cut-outs at midday are mixed, $66 higher (select) and down $0.82 per cwt (choice) with light movement of 62 total loads reported (35 loads of choice cuts, 16 loads of select cuts, no loads of trimmings, 11 loads of ground beef). FEEDER CATTLE: Strong buyer support continues to hold through feeder cattle futures as buyers focus on the support seen in front-month live cattle futures. This is sparking additional interest through all spring and summer feeder cattle futures which may draw additional interest back into the complex through the rest of the week. March and April futures remain firmly planted above $159 per cwt as the triple-digit gains hold. But it is uncertain just how much follow through support is under this market at this point and if prices will hold through the end of the session. LEAN HOGS: Narrowly mixed trade is seen though the lean hog complex with traders still holding onto moderate losses in the front month April contracts. Early triple digit losses have given way based on strong gains seen in the cattle complex, but the support remains limited based on the uncertainty surrounding weak cash market activity. Outside of front-month futures, the rest of the complex is stuck in a narrow range between 12 cents lower and 12 cents higher with traders unwilling to shift in either direction at this point, which may keep markets quiet through the end of the session. Cash prices are lower on the National Direct morning cash hog report. The weighted average price fell $0.99 per cwt to $60.69 per cwt with the range from $55.00 to $63.00 per cwt on 3,533 head reported sold. Cash prices unreported due to confidentiality on the Iowa Minnesota Direct morning cash hog report. The National Pork Plant Report reported 207 loads selling with prices down $0.01 per cwt. Lean hog index for 3/4 is at $66.61 down 0.29, with a projected two-day index of $66.46, down 0.15. Rick Kment can be reached at rick.kment@dtn.com (ES) Copyright 2016 DTN/The Progressive Farmer. All rights reserved.