DTN Midday Livestock Comments 03/31 11:56

DTN Midday Livestock Comments 03/31 11:56 Cattle Futures Rebound Midday Thursday Firm support is developing through cattle trade late Thursday as feeder cattle futures are leading the complex higher with triple-digit gains. Following the morning boxed beef report, beef values were lower, but still higher than expected, which helped to draw traders back into the market at midday Thursday. By Rick Kment DTN Analyst GENERAL COMMENTS: Firm buyer support is stepping into live cattle and feeder cattle trade midday Thursday following the release of the boxed beef report, which posted lower beef cutout values. The fact that losses were less than expected has helped to curb market pressure during late-month trade. The late-month rally is still not enough to change the overall tone of the weakness seen through the market over the last week. Hog futures continue to shift lower as strong pressure holds across the complex. Corn prices are sharply lower following the USDA report. May corn futures are 14 cents lower. Stock markets are higher in light trade. The Dow Jones is 21 points higher while Nasdaq is up 20 points. LIVE CATTLE: Live cattle futures rebounded at midday following lower boxed beef values in the morning cutout report. Moderate losses were seen in both the choice and select markets, but traders who were focusing on more aggressive pressure following the market slide midweek appeared to be relieved by the lack of aggressive turn lower in beef values. This sparked strong triple-digit gains in feeder cattle and has helped push most nearby live cattle futures 40 to 50 cents higher at midday. April futures remain stuck in a rut, with 10-cent losses due to light trade volume. But light-to-moderate buyer support is trying to regroup through the rest of summer and fall contracts through the end of the session. Cash cattle activity is mostly undeveloped through the morning with just a handful of sales reported in the south at $133 per cwt, although bids are much more active through the morning with bids in the South seen at $131 to $133 and $214 in the North. Asking prices remain at $138 and higher in the South and $220 and higher in the North. It is likely that active cash cattle trade may not be seen until sometime Friday. Beef cut-outs at midday are lower, $1.62 lower (select) and down $0.87 per cwt (choice) with active movement of 106 total loads reported (54 loads of choice cuts, 29 loads of select cuts, 8 loads of trimmings, 14 loads of ground beef). FEEDER CATTLE: Morning losses seen through feeder cattle futures have been replaced by aggressive triple-digit gains in all feeder cattle contracts following the release of morning beef cutout reports. Even though boxed beef values posted losses in the morning report, the lack of continued aggressive pressure like seen midweek has led to a $2 per cwt rally at midday, helping to regain some of the previous losses. The overall market still remains incredibly weak, although short covering activity is likely to develop over the next couple hours, potential bringing more volatility to the market leading to closing bell. LEAN HOGS: Firm losses have once again developed through the lean hog futures market with traders quickly backing away from the complex at the end of the market. The combination of further pressure in market fundamentals and technical pressure at the end of the month has led to widespread market weakness in nearby and deferred contracts. A close at this level in April futures would move below the February low, creating additional concern of additional market pressure over the near future. Cash prices are lower on the National Direct morning cash hog report. The weighted average price fell $2.01 per cwt to $60.22 per cwt with the range from $59.25 to $61.00 per cwt on 3,244 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 160 loads selling with prices down $1.63 per cwt. Lean hog index for 3/29 is at $65.25, up $0.32 with a projected two-day index of $65.54, up $0.29. Rick Kment can be reached at rick.kment@dtn.com (ES) Copyright 2016 DTN/The Progressive Farmer. All rights reserved.