DTN Midday Livestock Comments 04/11 11:36

DTN Midday Livestock Comments 04/11 11:36 Moderate Pressure Slips into Cattle Futures Late Monday Morning Strong early support in cattle trade was short-lived as trader activity continues to slip lower. Moderate pressure continues to weaken through the end of the morning in lean hog trade with consistent pressure seen in all summer and fall contracts. By Rick Kment DTN Analyst GENERAL COMMENTS: Early support across live cattle and feeder cattle futures quickly faded due to lack of volume in the market as traders quickly remained leery of breaking through short term resistance levels. This has opened up moderate selling pressure across the complex through the rest of the morning. Trader volume is expected to remain sluggish through the rest of the day, although the tone of the market remains defensive. Corn prices are lower. May corn futures are 5 cents lower. Stock markets are higher in light trade. The Dow Jones is 81 points higher while Nasdaq is up 17 points. LIVE CATTLE: Live cattle futures are mixed to mostly lower at midday after giving up strong early-morning gains. The lack of follow-through support through the day and uncertainty about pushing prices through support levels of $135 per cwt in April futures continues to add caution to the entire cattle market. Trade volume is expected to remain sluggish through the rest of the day, although prices may be able to moderate within a narrow range within the last hour of trade. Cash cattle remain quiet Monday, which is expected early in the week as show list distribution and inventory taking is the main focus through all areas of cattle country. The mixed trade of cash business which was seen through the week is giving mixed expectations for both packers and feeders going into this week and the middle of April. Show lists are larger, as bids are undeveloped. Asking prices are also likely going to be hard to pinpoint for the next couple of days. Beef cut-outs at midday are higher, $0.99 higher (select) and up $1.46 per cwt (choice) with active movement of 106 total loads reported (62 loads of choice cuts, 13 loads of select cuts, 8 loads of trimmings, 25 loads of ground beef). FEEDER CATTLE: Early support across the feeder cattle market and entire cattle complex quickly eroded through the morning Monday with traders focusing on selling pressure in fall and winter contacts. The lack of buyer support in the market early in the week continues to create more emotional and momentum concern to the market than any fundamental moves seen early in the week. Trade volume so far have remained light, although there may be some additional interest based on any late-day shifts in live cattle markets. LEAN HOGS: Light to moderate pressure in nearby contracts is driving the complex lower through the morning with June through December contracts holding 55 to 60 cent losses at midday. The lack of interest in the market continues to keep traders cautious but still unwilling run away from the market too quickly at this point. Cash prices are lower on the National Direct morning cash hog report. The weighted average price fell $1.42 per cwt to $60.56 per cwt with the range from $56.00 to $61.50 per cwt on 2,397 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 158 loads selling with prices up $0.71 per cwt. Lean hog index for 4/7 is at $66.57, up 0.01 with a projected two-day index of $66.52, down 0.05. Rick Kment can be reached at rick.kment@dtn.com (ES) Copyright 2016 DTN/The Progressive Farmer. All rights reserved.