DTN Midday Livestock Comments 04/01 11:34

DTN Midday Livestock Comments 04/01 11:34 Cattle Futures Mixed in Sluggish Early April Trade 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: Cattle Futures Mixed in Sluggish Early April Trade Live cattle futures remain mixed at midday following sluggish trade through most of the morning Friday. The lack of direction on the first of April is pointing to traders focus on additional cash market and beef value weakness while market pressure while increased interest may develop early next week. Strong follow through pressure is developing in lean hog futures midday Friday. Strong pressure continues to develop through lean hog futures as traders focus on follow through selling pressure at the end of the week. Cattle trade remains mixed in lightly traded markets. Traders appear to be willing to wait on the sidelines until stepping back into the complex, following end of the month positioning taking place Thursday. Corn prices are lower. May corn futures are 1 cent lower. Stock markets are higher in light trade. The Dow Jones is 35 points higher while Nasdaq is up 16 points. LIVE CATTLE: Live cattle futures are mixed in a light trading range with April futures leading the market higher with a 40 cent gain at midday. Traders seem to be focusing on treading water following the additional cash market pressure developing through the week and additional boxed beef market losses which continue to develop. But traders are unwilling to become too aggressive at this point, partially due to extremely light trade volume in the complex Friday as many traders appear to liquidated positions at the end of the month and may not step back into the complex until early next week. Cash cattle activity generally quiet with a few scattered sales in the North at $215 following light to moderate business Thursday. There is likely to be some additional clean up trade developing Friday although the tone of the market is likely set following Thursday's business. Prices were seen in the South at $133, generally $3 lower from last week, and $214 to $215 in the North, which is about $3 to $4 per cwt lower than last week. Asking prices are at $135 and higher in the South and $218 and higher in the North. Beef cut-outs at midday are lower, $2.37 lower (select) and down $1.14 per cwt (choice) with light movement of 86 total loads reported (55 loads of choice cuts, 23 loads of select cuts, no loads of trimmings, 7 loads of ground beef). FEEDER CATTLE: Feeder cattle futures have moderated through the end of the morning with light losses seen in extremely light trade activity. The ability for live cattle futures to battle back to mixed trade levels and potentially close higher at the end of the session is holding well off of session lows, but also keeping many traders from quickly stepping into the complex at the end of the week. Given the Sharp limit higher gains seen Thursday on corn market pressure, many traders may allow markets to ride this move through early next week. LEAN HOGS: Lean hog futures continue to carry the bearish tone seen through the week and end of March into Friday's trading session with strong triple-digit losses seen in most nearby contract months. This lack of support continues to focus on a combination of technical pressure and lack of fundamental support through the spring months as traders are unwilling to step back into the market after the Easter holiday, even though the hogs and pigs report carried a slightly supportive tone to the report. Cash prices are lower on the National Direct morning cash hog report. The weighted average price fell $0.75 per cwt to $60.94 per cwt with the range from $59.00 to $63.78 per cwt on 2,796 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 110 loads selling with prices up $0.39 per cwt. Lean hog index for 3/30 is at $65.54, up 0.29 with a projected two-day index of $65.72, up 0.18. Rick Kment can be reached at rick.kment@dtn.com (ES) Copyright 2016 DTN/The Progressive Farmer. All rights reserved.