DTN Midday Livestock Comments 05/13 12:05

DTN Midday Livestock Comments 05/13 12:05 Feeder Cattle Futures Shift Lower Friday Despite strong cash cattle trade developing Thursday. Sharp losses developed through the cattle market. This is keeping the overall tone of the market under pressure. By Rick Kment DTN Analyst GENERAL COMMENTS: Sharp losses in feeder cattle futures are holding the entire cattle complex lower despite aggressive cash cattle market gains which developed Thursday. This could add to even more uncertainty in the complex through the end of the month. Corn prices are mixed. May corn futures are 1 cent higher. Stock markets are lower in light trade. The Dow Jones is 74 points lower while Nasdaq is down 2 points. LIVE CATTLE: June futures have moved higher and held narrow gains based on strong cash market support. But the rest of the complex has come under pressure based on the lack of support in the feeder cattle futures. The lack of follow through support and overall bearishness long term in the cattle complex seems to underpin any fundamental strength in the market. Cash cattle trade is done for the week following the sharp shift higher Thursday where cash prices jumped $7 per cwt higher in the South and $10 per cwt higher than last week's levels. Moderate to active trade was seen, but it is still not likely enough business to generate enough movement to keep plants busy ahead of the holiday weekend, leaving them to go to the market and become more aggressive next week once again. Beef cut-outs at midday are higher, $0.58 higher (select) and up $3.48 per cwt (choice) with light movement of 71 total loads reported (34 loads of choice cuts, 26 loads of select cuts, no loads of trimmings, 11 loads of ground beef). FEEDER CATTLE: The development of higher cash cattle trade has quickly sparked additional interest in the feeder cattle market, pushing triple digit gains in several nearby and deferred contract months. August feeder cattle contracts are holding a $1.05 per cwt gain with contracts above $150 per cwt once again as traders remain focused on the ability to draw additional interest back into the market late in the week. LEAN HOGS: Lean hog futures have started to fall apart Friday morning with June futures leading the market lower, holding a $1-per-cwt loss through the entire morning. The lack of underlying support through the complex continues to create uncertainty in both futures markets as well as the cash trade with traders willing to take a breather over the weekend as they reassess the market. Tighter supplies are expected to continue, allowing for packers to need to become more aggressive in order to keep up similar chain speeds through the next couple weeks. Cash prices are lower on the National Direct morning cash hog report. The weighted average price fell $0.83 per cwt to $73.39 per cwt with the range from $67.00 to $75.00 per cwt on 1,939 head reported sold. Cash prices are lower on the Iowa Minnesota Direct morning cash hog report. The weighted average price fell $1.26 per cwt to $74.30 per cwt with the range from $67.00 to $75.00 per cwt on 290 head reported sold. The National Pork Plant Report reported 122 loads selling with prices up $1.16 per cwt. Lean hog index for 5/11 is at $76.05, up 0.44 with a projected two-day index of $76.43, up 0.43. Rick Kment can be reached at rick.kment@dtn.com (ES) Copyright 2016 DTN/The Progressive Farmer. All rights reserved.