DTN Midday Livestock Comments 04/18 11:54

DTN Midday Livestock Comments 04/18 11:54 Cattle Futures Hold Aggressive Losses Monday Widespread liquidation continues through the morning Monday as traders hold cattle futures limit lower. The aggressive pressure through the entire complex is putting pressure on short and long term support even though little has changed in market fundamentals over the last couple of weeks. By Rick Kment DTN Analyst GENERAL COMMENTS: Aggressive limit losses have held through live cattle and feeder cattle futures through the morning Monday. Trade volume has remained moderate at best, but the strong pressure has continued to keep buyers on the sidelines through the morning. Lean hog futures remain slightly lower given the pressure in the cattle market, although losses remain held in check by previous gains late last week. Corn prices are higher. May corn futures are 3 cents higher. Stock markets are higher in light trade. The Dow Jones is 100 points higher while Nasdaq is up 15 points. LIVE CATTLE: Live cattle futures have spent most of the morning Monday locked in limit down trade in nearby contracts following April futures falling below $130 per cwt which sparked additional aggressive liquidation. June through April contracts are now trading from $114 per $119 per cwt given the recent market weakness as traders remain focused on pressure which has steadily developed through the morning. Cash cattle activity is quiet Monday morning given the sharp limit down moves in the futures complex. Asking prices and bids are undeveloped while showlists are generally larger for the week. It is expected that most trade will be delayed until the second half of the week, but the aggressive trade losses could spark some hedging opportunities early in the week, but these could be few and far in between. Beef cut-outs at midday are mixed, $0.18 higher (select) and down $0.13 per cwt (choice) with light movement of 73 total loads reported (30 loads of choice cuts, 20 loads of select cuts, 10 loads of trimmings, 14 loads of ground beef). FEEDER CATTLE: Feeder cattle futures remain locked in limit-lower trade at midday in all nearby contracts as traders focus on the inability to draw buyers back to the market following the lack of support in cash prices and stable futures trade last week. It is uncertain if buyers will be able to wiggle back into the complex and work prices back away from the limit moves of $4.50 per cwt losses before closing bell. LEAN HOGS: Light pressure is holding across the lean hog futures market Monday morning with traders seeing the influence from the feeder cattle and live cattle complex. Moderate early gains which developed across the market have been unable to hold given the limit down pressure in cattle markets, but this may not be able to hold prices lower through the rest of the session. Cash prices are lower on the National Direct morning cash hog report. The weighted average price fell $0.36 per cwt to $61.38 per cwt with the range from $55.00 to $64.00 per cwt on 3,688 head reported sold. Cash prices are higher on the Iowa Minnesota Direct morning cash hog report. The weighted average price added $0.09 per cwt to $63.58 per cwt with the range from $55.00 to $64.00 per cwt on 1,023 head reported sold. The National Pork Plant Report reported 155 loads selling with prices up $0.77 per cwt. Lean hog index for 4/14 is at $66.67, down 0.04 with a projected two-day index of $66.55, down 0.12. Rick Kment can be reached at rick.kment@dtn.com (ES) Copyright 2016 DTN/The Progressive Farmer. All rights reserved.