DTN Midday Livestock Comments 04/13 11:56

DTN Midday Livestock Comments 04/13 11:56 Sharp Losses Shift Through Nearby Live Cattle Futures Defensive selling pressure has taken hold of cattle and hog futures with triple-digit pressure seen in both live cattle and lean hog futures at midday. The lack of futures market support comes despite support in meat values in both pork and beef markets. By John Harrington DTN Analyst GENERAL COMMENTS: Live cattle futures have continued to move aggressively lower with nearby contracts holding triple-digit losses. The lack of support in April and June futures despite sharply higher beef values has all livestock markets on the defensive ropes. Corn prices are higher. May corn futures are 9 cents higher. Stock markets are higher in light trade. The Dow Jones is 153 points higher while Nasdaq is up 58 points. LIVE CATTLE: Triple-digit losses have developed in nearby live cattle futures despite aggressive gains holding across boxed beef markets in the morning report. The lack of follow-through support in the cattle futures market is creating uncertainty and even more confusion across the entire complex. Traders remain focused on the lack of direction in the market as front month April futures move further away from the $135 per cwt price levels, making it harder to point to renewed support given the firmness of beef values through the week. 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, $3.03 higher (select) and up $2.88 per cwt (choice) with moderate movement of 91 total loads reported (36 loads of choice cuts, 20 loads of select cuts, 8 loads of trimmings, 27 loads of ground beef). FEEDER CATTLE: The inability to hold early support across the feeder cattle complex Wednesday morning has opened the door to renewed selling pressure across the entire cattle market. Front month spot contracts are able to hold moderate losses of 37 cents per cwt, while the rest of the complex is eroding more aggressively with losses of 50 cents to $1.20 per cwt. The lack of underlying support redeveloping in the complex after last week's rally continues to add even more uncertainty to the market adding questions about how much support can be sustained through the next several weeks even when seasonal support is expected. LEAN HOGS: Hog futures have continued to erode lower through the morning with losses advancing to triple digit losses at midday. April futures remain stuck motionless with 15 cent losses as traders are focusing on lack of support through the rest of the complex. Even with firming cash market support in morning reports, futures trade has moved $1 to $1.50 per cwt lower based on overall lack of support through the market and still large hog supplies available to the market. Cash prices are lower on the National Direct morning cash hog report. The weighted average price fell $0.12 per cwt to $61.32 per cwt with the range from $54.00 to $63.50 per cwt on 5,811 head reported sold. Cash prices are higher on the Iowa Minnesota Direct morning cash hog report. The weighted average price added $0.27 per cwt to $62.90 per cwt with the range from $54.00 to $63.50 per cwt on 2,881 head reported sold. The National Pork Plant Report reported 194 loads selling with prices up $1.13 per cwt. Lean hog index for 4/11 is at $66.64, up 0.12 with a projected two-day index of $66.70, up 0.06. Rick Kment can be reached at rick.kment@dtn.com (ES) Copyright 2016 DTN/The Progressive Farmer. All rights reserved.