DTN Midday Livestock Comments 03/09 12:01

DTN Midday Livestock Comments 03/09 12:01 Cattle Futures Mixed in Narrow Range Narrow trading ranges defined the cattle markets Wednesday morning as prices remain mixed due to very light trade volume and the inability to draw additional market activity into the complex. There continues to be strong support holding in front month April lean hog futures, while the rest of the complex has followed the cattle market pattern of mixed trade activity. By Rick Kment DTN Analyst GENERAL COMMENTS: Cattle futures are stuck in narrow trading ranges with little to no direction through the entire morning. There is very little expected movement likely to be seen in either price direction or volume through the rest of the trading session, allowing markets to wander toward closing bell near unchanged. Lean hog futures continue to hold firm gains in front month April futures while the rest of the complex remains mixed in a narrow range. Corn prices are lower. May corn futures are 1 cent lower. Stock markets are higher in light trade. The Dow Jones is 41 points higher while Nasdaq is up 13 points. LIVE CATTLE: Live cattle futures have moved absolutely nowhere at midday with prices straddling unchanged price levels in single-digit ranges. The lack of cash market direction while beef values are mixed following the morning report is giving no direction to the market through the middle of the week. Trade volume has been quiet all morning and expected to remain that way through the rest of the day, as traders continue to look for any sign of life coming from either outside markets or cash market movement that could spark traders to quickly jump back into the complex. Cash cattle activity is quiet Wednesday morning following the light trade seen Tuesday afternoon which developed at steady money in both the North and the South. It is expected that the handful of cattle that were sold were not enough to test the waters, leaving activity to be pushed to the end of the week. Bids are undeveloped, and asking prices are holding at $138 and higher in the South and $218 and higher in the North. It will likely be Friday once again before most trade is seen. Beef cut-outs at midday are mixed, $0.17 lower (select) and up $1.48 per cwt (choice) with active movement of 110 total loads reported (61 loads of choice cuts, 19 loads of select cuts, 3 loads of trimmings, 26 loads of ground beef). FEEDER CATTLE: Feeder cattle futures have reverted back to narrow trading ranges at midday with nearby contracts hovering from unchanged to 25 cents higher, while deferred contracts remain 20 to 40 cents per cwt lower. The lack of overall trade volume across the entire complex remains constant through the entire market which continues to be the limiting factor in the whole livestock market and could keep traders unwilling to step back into the market through the rest of the session. LEAN HOGS: Front-month April lean hog futures continue to lead the complex higher with 65 cent gains at midday as traders focus on firm pork market support midweek, although overall trade volume across the complex remains extremely light. The rest of the hog complex remains stuck in an extremely narrow but mixed trading range from 17 cents lower to 30 cents higher with traders focusing on recent cash market pressure, but unwilling to give up on the commercial support in futures markets based on seasonal demand expectations. Cash prices are lower on the National Direct morning cash hog report. The weighted average price fell $1.09 per cwt to $60.69 per cwt with the range from $54.00 to $62.50 per cwt on 3,029 head reported sold. Cash prices unreported due to confidentiality on the Iowa Minnesota Direct morning cash hog report. The National Pork Plant Report reported 252 loads selling with prices up $0.74 per cwt. Lean hog index for 3/7 is at $66.46 down 0.15, with a projected two-day index of $66.48, up 0.02. Rick Kment can be reached at rick.kment@dtn.com (ES) Copyright 2016 DTN/The Progressive Farmer. All rights reserved.