DTN Midday Livestock Comments 04/14 12:00

DTN Midday Livestock Comments 04/14 12:00 Wide Morning Price Swings Shift to Mixed Market Moves Cattle trade is holding mixed prices midday Thursday after giving up wide price swings through the morning as buyers and sellers have stepped in and out of the market at different times through the morning. The lack of consistency through the morning is adding uncertainty to market direction. By John Harrington DTN Analyst GENERAL COMMENTS: Mixed cattle trade in a narrow range has shifted the trading range from the wide market activity seen thorugh the morning as traders continue to volley back and forth on either side of unchanged at midday. Lean hog futures remain unchanged given weakness in fundamentals. Corn prices are lower. May corn futures are 2 cents higher. Stock markets are higher in light trade. The Dow Jones is 37 points higher while Nasdaq is up 9 points. LIVE CATTLE: Light trade in a narrow price range is seen at midday with prices hovering between 17 cents lower and 15 cents higher in most contracts months. The lack of overall direction following the wide price swings higher and lower earlier in the session seems to create some uncertainty as to where the market is headed toward the end of the week. Volume is expected to remain sluggish through the rest of the session, although price volatility may continue to be seen. Cash cattle trade is still quiet, and may not develop until Friday, although bids are becoming more available through the morning with bids in the South at $131 to $132 and $215 to $216 in the North. Asking prices are holding at $136 to $138 in the South and $218 and higher in the North. Beef cut-outs at midday are higher, $2.43 higher (select) and up $1.81 per cwt (choice) with moderate movement of 58 total loads reported (26 loads of choice cuts, 12 loads of select cuts, 5 loads of trimmings, 15 loads of ground beef). FEEDER CATTLE: Feeder cattle trade has wandered higher and lower through the morning with trade currently mixed in a narrow range. The inability for traders to hold onto a position through the morning is more concerning to the trade than anything else at this point as prices have gone from moderate losses to moderate to strong gains, and then back to narrowly mixed prices. The overall lack of consistency with such a short period of time not only is pointing to the inability to draw significant volume back into the market, but also capitalize on the pullback in pressure in grain prices Thursday. LEAN HOGS: Losses in the hog complex have expanded through the morning with all but front month April futures trading lower at midday. Spot April futures are holding 30 cent gains as the market remains stable, while the rest of the complex is eroding quickly following recent market pressure with losses of 45 to 95 cents per cwt as traders focus on building weakness seen over the last week. Cash prices are lower on the National Direct morning cash hog report. The weighted average price fell $2.35 per cwt to $60.15 per cwt with the range from $55.00 to $62.00 per cwt on 1,806 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 178 loads selling with prices down $0.95 per cwt. Lean hog index for 4/12 is at $66.70, up 0.06 with a projected two-day index of $66.71, up 0.01. Rick Kment can be reached at rick.kment@dtn.com (ES) Copyright 2016 DTN/The Progressive Farmer. All rights reserved.