DTN Midday Livestock Comments 03/14 11:29

DTN Midday Livestock Comments 03/14 11:29 Feeder Cattle Futures Pull Back From Strong Morning Gains Strong gains seen early in the session for feeder cattle futures have allowed for mixed trade to develop in the cattle complex. This is allowing for additional uncertainty to be seen across the livestock market as lean hog trade remains under pressure after front-month futures have shown sharp triple-digit losses Monday morning. By Rick Kment DTN Analyst GENERAL COMMENTS: Moderate to strong pressure has held across lean hog futures trade Monday morning as April futures continue to set the pace with triple-digit losses holding at midday through the entire morning. Cattle futures remain mixed at midday after feeder cattle futures have given back strong triple-digit losses due to the lack of follow-through interest stepping into the market. Corn prices are higher. May corn futures are 3 cents higher. Stock markets are lower in light trade. The Dow Jones is 2 points lower while Nasdaq is down 2 points. LIVE CATTLE: Moderate buyer support continues to hold through summer and fall live cattle contracts, despite the softness in both front-month futures and deferred contracts. Traders are focusing on the potential demand support for beef through the summer months, and expected tight supplies of cattle to continue over the coming months. But this is not expected to create significant market movement at this point, limiting buyer activity through the rest of the session. Cash cattle markets are quiet Monday, which is not unexpected as a typical Monday of show-list distribution and inventory taking is taking place. Show lists are generally steady to lower for the week. Bids are undeveloped, and asking prices are not fully disclosed and unlikely to be seen until Tuesday or later. Trade is likely to be delayed until the last half of the week given the success of feeders holding out until late Friday over the last few weeks. Beef cut-outs at midday are higher, $0.70 higher (select) and up $1.72 per cwt (choice) with light movement of 49 total loads reported (25 loads of choice cuts, 9 loads of select cuts, zero loads of trimmings, 15 loads of ground beef). FEEDER CATTLE: Feeder cattle futures have bounced all over the place Monday morning, as traders continue to jump in and out of the market seemingly without much reason at all. Sharp gains which developed in spring and summer contracts through midmorning have essentially evaporated, allowing for narrowly mixed trade to be seen at midday. The overall lack of consistency in the complex and depth of buyer support is concerning for not only the feeder cattle market but the entire livestock futures as a whole. LEAN HOGS: Moderate pressure quickly developed in front-month April lean hog futures with traders focusing on quickly backing away from the recent market support which has developed over the last week. So far, April futures have been able to hold above $70 per cwt, but a break below that level, may spark additional liquidation through the next few trading sessions, leaving room for a major break lower in the lean hog market. Other nearby contracts remain lightly traded with narrow price ranges holding as the focus continues to limit overall market activity. Cash prices are lower on the National Direct morning cash hog report. The weighted average price fell $0.77 per cwt to $61.33 per cwt with the range from $59.00 to $62.75 per cwt on 2,646 head reported sold. Cash prices unreported due to confidentiality on the Iowa Minnesota Direct morning cash hog report. The National Pork Plant Report reported 132 loads selling with prices down $0.74 per cwt. Lean hog index for 3/10 is at $66.66 up 0.10, with a projected two-day index of $66.75, up 0.09. Rick Kment can be reached at rick.kment@dtn.com (ES) Copyright 2016 DTN/The Progressive Farmer. All rights reserved.