DTN Midday Livestock Comments 03/18 12:02

DTN Midday Livestock Comments 03/18 12:02 Strong Early Pressure Holds Across Cattle Complex With no additional market direction and traders unwilling to step back into the complex, live cattle and feeder cattle markets continue to hold early market pressure at midday. This could limit any end-of-day support, despite light volume across the market. Hog futures are slightly higher in a narrow range. By Rick Kment DTN Analyst GENERAL COMMENTS: Cattle futures continue to remain under pressure with traders focusing on the lack of direction in cash cattle markets, weakness in boxed beef values and upcoming Cattle on Feed Report. This has limited trade activity through the entire complex, keeping volume at a near standstill through most of the morning. Corn prices are lower. May corn futures are 2 cents lower. Stock markets are higher in light trade. The Dow Jones is 103 points higher while Nasdaq is up 25 points. LIVE CATTLE: Moderate pressure is holding across live cattle trade following an extremely quiet morning of trade across the futures complex. The pressure in beef values continues to create concerns through deferred live cattle markets and slowly limit buyer support in front month April futures. Light trade in boxed beef activity is actually more of a culprit than actual a reversal in market conditions, but traders remain nervous with end light trade expected through the upcoming week and end of month and quarter just around the corner. Cash cattle trade in earnest appears to be delayed until after the cattle on feed report with just a few cattle sold in Iowa during the morning at $223 per cwt. Bids are seen in Nebraska at $220 to $222 per cwt at major packers. Bids in the South are seen at $136 per cwt. Asking prices continue to be seen at $142 and higher in the South and $224 to $225 in the North. Beef cut-outs at midday are mixed, $0.34 higher (select) and down $2.35 per cwt (choice) with light movement of 65 total loads reported (36 loads of choice cuts, 11 loads of select cuts, no loads of trimmings, 18 loads of ground beef). FEEDER CATTLE: Sharp losses continue to hold in most feeder cattle futures at midday although prices have moved very little in most contract months since early trade except for front-month March contracts, which have regained buyer support and moved higher as buyers have stepped back into the market. Market activity has remained extremely sluggish through the entire complex, as traders look for additional direction from both cash market activity and the cattle on feed report. But neither of these factors will likely be seen before markets close, potentially allowing markets to close under pressure. LEAN HOGS: Lean hog futures have remained tightly grouped in a narrow trading range through the entire morning Friday with light buyer support developing near midday based on firmness in pork values on the midday cutout report. The softness in cash hog values on the national report is not surprising given the overall pressure in the market, but has had little effect in futures prices through the end of the week. Nearby lean hog futures still have very limited buyer interest with gains of 10 to 20 cents per cwt, with traders still finding it hard to draw additional support back into the complex. Cash prices are lower on the National Direct morning cash hog report. The weighted average price fell $1.91 per cwt to $59.83 per cwt with the range from $59.01 to $62.00 per cwt on 3,355 head reported sold. Cash prices are unreported due to confidentiality on the Iowa Minnesota Direct morning cash hog report. The National Pork Plant Report reported 152 loads selling with prices up $0.71 per cwt. Lean hog index for 3/16 is at $66.78, unchanged with a projected two-day index of $66.61, down 0.17. Rick Kment can be reached at rick.kment@dtn.com (ES) Copyright 2016 DTN/The Progressive Farmer. All rights reserved.