DTN Midday Livestock Comments 03/30 12:05

DTN Midday Livestock Comments 03/30 12:05 Sharp Losses Flood into Cattle Trade Widespread liquidation develops across the cattle market Wednesday morning. This is creating additional uncertainty through the complex at the end of the month, likely leading to widespread liquidation and potential limit losses by the end of the session. Triple-digit losses have also developed in hog futures following the pressure in cattle trade. By Rick Kment DTN Analyst GENERAL COMMENTS: Sharp losses are quickly developing across the cattle complex with live cattle and feeder cattle holding triple-digit losses at midday. The lack of support in the market is sparking uncertainty not only in the cattle market, but spreading quickly through the hog complex, which has responded with triple-digit losses also. Corn prices are lower. May corn futures are 3 cents lower. Stock markets are higher in light trade. The Dow Jones is 64 points higher while Nasdaq is up 17 points. LIVE CATTLE: Early mixed trade quickly gave way to sharp triple-digit losses as long liquidation flooded the live cattle complex Wednesday morning. Traders have been driven by technical pressure which is sparking additional market shifts through the Wednesday session. There continues to be active trade seen through the entire complex as not only traders continue to focus on aggressive widespread liquidation, but the focus on weaker cash market potential and softer beef values in the morning report is causing concerns of widespread uncertainty through the entire complex at the end of the month. Cash cattle markets are generally quiet Wednesday morning with very few bids developing through the morning. Just a handful of sales are seen in Nebraska following the sharp tumble lower in futures prices, as cash prices are seen at $214 per cwt. This is $4 lower than last week, but this is not enough to establish a good market test. Beef cut-outs at midday are lower, $3.53 lower (select) and down $2.48 per cwt (choice) with active movement of 104 total loads reported (52 loads of choice cuts, 25 loads of select cuts, 7 loads of trimmings, 20 loads of ground beef). FEEDER CATTLE: Widespread losses have quickly flooded into the cattle complex Wednesday morning with aggressive losses seen in both feeder cattle and live cattle trade. The technical pressure seen through the complex has not yet pushed prices to limit lows, but these daily limits are within striking distance at midday as traders appear to be quickly liquidation positions which have been building through he last several weeks. LEAN HOGS: Early support across the lean hog futures market could only hold on for so long, as the building pressure in the cattle complex continued to creep across the market lines leaking into the hog complex and quickly eroding support. Once traders seemed to give into the selling pressure it quickly turned into triple digit losses as losses have developed across all lean hog futures focusing on the widespread pressure in the livestock market. Technical pressure continues to take hold of the complex, as traders continue to focus on end of the month and end of the quarter position squaring. April futures have now broken through March lows, creating additional market uncertainty through the near term. Cash prices are lower on the National Direct morning cash hog report. The weighted average price fell $0.78 per cwt to $60.85 per cwt with the range from $60.26 to $63.00 per cwt on 3,920 head reported sold. Cash prices are lower on the Iowa Minnesota Direct morning cash hog report. The weighted average price fell $0.66 per cwt to $62.41 per cwt with the range from $61.50 to $63.00 per cwt on 1,080 head reported sold. The National Pork Plant Report reported 209 loads selling with prices up $0.52 per cwt. Lean hog index for 3/28 is at $64.93, down 0.13 with a projected two-day index of $65.25, up 0.32. Rick Kment can be reached at rick.kment@dtn.com (ES) Copyright 2016 DTN/The Progressive Farmer. All rights reserved.