DTN Midday Livestock Comments 04/20 11:40

DTN Midday Livestock Comments 04/20 11:40 Live Cattle Future Continue Lower Wednesday Follow through pressure develops in live cattle futures contracts as traders continue to liquidate positions following concerns of additional fundamental pressure through the last half of April. Lean hog futures remain firm based on support building on commercial traders quickly stepping back into the market through the week. By Rick Kment DTN Analyst GENERAL COMMENTS: Cattle futures continue to erode Wednesday morning with traders focusing on concerns of further cash market pressure through the week and additional fundamental and technical pressure. Lean hog futures continue to hold strong gains in nearby contract months, but light trade activity in deferred contracts keeping prices mixed. Corn prices are higher. May corn futures are 4 cents higher. Stock markets are higher in light trade. The Dow Jones is 51 points higher while Nasdaq is up 13 points. LIVE CATTLE: Firm losses continue to hold through the live cattle futures complex with April and June contracts holding 70 to 80 cent losses in moderate activity based on concerns that additional cash market pressure may develop and beef markets may remain weak through the end of the month. Cash cattle markets are quiet with just a few scattered bids developing at $127 in the South and $208 in the North. Asking prices are redeveloping at $134 in the South. It is expected that the majority of trade will be delayed until sometime Thursday or Friday and may be late Friday after the release of the cattle on feed report. Beef cut-outs at midday are higher, $0.25 higher (select) and up $0.27 per cwt (choice) with moderate movement of 91 total loads reported (44 loads of choice cuts, 18 loads of select cuts, 19 loads of trimmings, 11 loads of ground beef). FEEDER CATTLE: Feeder cattle futures have moderated through the end of the morning with prices mixed in an extremely narrow range. The light trade volume in spring and summer contracts is limiting additional market direction and creating some uncertainty through the entire complex. Even though traders remain focused on the direction concerning beef market fundamentals, seasonal support traditionally is expected to help draw buyers back into the market. LEAN HOGS: Firm gains continue to hold through midday across nearby contracts, although deferred futures have given back most of the early gains as December and February contracts are now holding 10 to 25 cent losses. The lack of follow through buying activity in the lean hog market is a direct result from light volume across the entire market and not based on increased interest in expanding price support following the recent market after hitting support levels late last week. Cash prices are lower on the National Direct morning cash hog report. The weighted average price fell $1.73 per cwt to $61.25 per cwt with the range from $56.00 to $65.00 per cwt on 3,305 head reported sold. Cash prices are lower on the Iowa Minnesota Direct morning cash hog report. The weighted average price fell $0.76 per cwt to $63.77 per cwt with the range from $56.00 to $65.00 per cwt on 280 head reported sold. The National Pork Plant Report reported 208 loads selling with prices up $0.40 per cwt. Lean hog index for 4/18 is at $66.70, up 0.15 with a projected two-day index of $67.02, up 0.32. Rick Kment can be reached at rick.kment@dtn.com (ES) Copyright 2016 DTN/The Progressive Farmer. All rights reserved.