DTN Midday Livestock Comments 03/17 11:56

DTN Midday Livestock Comments 03/17 11:56 Cattle Futures Mixed Following Beef Market Weakness Mixed beef values on the Thursday morning cutout report has pulled cattle futures away from moderate gains as prices have turned mixed to moderately lower at midday. This lack of support through the complex could limit late week support through the entire livestock market. By Rick Kment DTN Analyst GENERAL COMMENTS: Mixed cattle futures are seen at midday following boxed beef trade which posted mixed prices, and a pullback from the strong prices support over the last couple of days. This may quickly shift the tone of the market, but the light volume may not be enough to shift overall trade activity late in the week. Corn prices are mixed. May corn futures are 0.25 cent higher. Stock markets are higher in light trade. The Dow Jones is 123 points higher while Nasdaq is up 6 points. LIVE CATTLE: Cattle futures have quickly pulled back away from moderate morning gains at midday following mixed boxed beef values. This is creating narrowly mixed trade activity through the complex, and could open up the door to moderate selling through the rest of the week. Although there still seems to be a lot of fundamental support still in the market, which could draw buyers back to the table, the concern that beef values got too high, too fast, may curb interest quickly. Cash bids have started to develop Thursday morning at $137 offered in the South and $122 in the North. So far there has been no interest in selling at these prices, and it is likely that feeders may hold off until Friday sometime at this point. Asking prices remain at $143 in the South and $225 in the North. Beef cut-outs at midday are mixed, $0.84 lower (select) and up $0.21 per cwt (choice) with light movement of 61 total loads reported (32 loads of choice cuts, 12 loads of select cuts, 6 loads of trimmings, 12 loads of ground beef). FEEDER CATTLE: Morning gains in cattle futures have eased as front month feeder cattle futures have posted moderate losses at midday. The pressure in the feeder cattle complex is expected to have taken a two part outlook with traders starting to factor in the higher placement expectation from the upcoming cattle on feed report, and also the mixed beef values seen in the morning cattle on feed report. The rest of the feeder cattle complex remains higher, but has pulled back from session highs, and is currently holding narrow gains at midday, as traders look for additional buyer interest to step back into the market. LEAN HOGS: Despite lower cash and pork values in morning reports, lean hog futures have still washed away most of the early losses from the morning and are holding light to moderate gains at midday. Trade volume remains light and may struggle to draw additional support through the rest of the trading session, but the focus on longer term support through the market may help to bring stability to futures prices. Cash prices are lower on the National Direct morning cash hog report. The weighted average price fell $1.02 per cwt to $62.10 per cwt with the range from $55.00 to $62.50 per cwt on 3,319 head reported sold. Cash prices are lower on the Iowa Minnesota Direct morning cash hog report. The weighted average price fell $0.61 per cwt to $62.19 per cwt with the range from $55.00 to $62.50 per cwt on 1,075 head reported sold. The National Pork Plant Report reported 162 loads selling with prices down $0.64 per cwt. Lean hog index for 3/15 is at $66.78 down 0.01, with a projected two-day index of $66.78, unchanged. Rick Kment can be reached at rick.kment@dtn.com (ES) Copyright 2016 DTN/The Progressive Farmer. All rights reserved.