DTN Midday Livestock Comments 04/22 11:46

DTN Midday Livestock Comments 04/22 11:46 Cattle Futures Post Sharp Losses Friday Additional pressure quickly developed through the cattle complex Friday morning with live cattle and feeder contracts holding triple-digit losses at midday. The upcoming cattle on feed report released Friday afternoon is bringing about additional uncertainty through the cattle market. By Rick Kment DTN Analyst GENERAL COMMENTS: Cattle trade remains extremely weak following triple-digit losses through most of the morning. Despite being able to battle back from limit losses at midday, the lack of underlying support in both fundamental and technical market factors continue to limit support across the market. Lean hog futures are mixed as the pressure in cattle trade has weighed on the hog complex. Corn prices are lower. May corn futures are 9 cents lower. Stock markets are lower in light trade. The Dow Jones is 35 points lower while Nasdaq is down 68 points. LIVE CATTLE: Sharp pressure has developed through the morning Friday with limit losses holding through midday. This pushed June futures below $115 per cwt through a portion of the morning, although at midday light buyer support has helped to draw prices slightly above that price level. The concern of growing placement numbers in the upcoming cattle on feed report combined with further erosion of cash cattle prices continue to keep cattle traders liquidating long positions held over the last several months. Concern follow through pressure leading to limit losses at the end of the session once again may create additional market bearishness leading into next week. Cash cattle activity is generally quiet with bids developing once again Friday morning following the sharp losses in futures trade, but at this point it still may be mid to late afternoon before business gets done. Bids are seen at $125 in the South and $200 to $202 in the North. Asking prices remain at $132 in the South and $210 to $212 in the North, but the wide gap will quickly close following the cattle on feed report. Beef cut-outs at midday are lower, $1.21 lower (select) and down $0.22 per cwt (choice) with moderate movement of 84 total loads reported (40 loads of choice cuts, 33 loads of select cuts, 6 loads of trimmings, 5 loads of ground beef). FEEDER CATTLE: Feeder cattle futures remain under pressure with triple-digit losses holding at midday. Losses have moved off of daily limit losses seen midmorning as additional trade activity has stepped back into the market. But the overall tone of the market remains weak. Nearby contracts remain $2 to $3 per cwt lower as traders are focusing on the lack of support in cash cattle markets as well as concerns that pressure in the cattle on feed report will bring about additional market pressure early next week. LEAN HOGS: Despite hanging tough through most of the morning, lean hog futures have slipped lower at midday as the aggressive pressure through the cattle complex has finally eroded buyer support through nearby and deferred contracts. This break lower in the market is not likely to create a significant shift in the positive support seen through the lean hog complex which has broken through strong support over the last week, but is bringing in late-week short covering before traders break for the weekend. Cash prices are lower on the National Direct morning cash hog report. The weighted average price fell $1.54 per cwt to $63.78 per cwt with the range from $58.00 to $66.00 per cwt on 1,861 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 144 loads selling with prices up $2.19 per cwt. Lean hog index for 4/20 is at $67.36, up 0.34 with a projected two-day index of $67.68, up 0.32. Rick Kment can be reached at rick.kment@dtn.com (ES) Copyright 2016 DTN/The Progressive Farmer. All rights reserved.