DTN Midday Livestock Comments 05/18 11:30

DTN Midday Livestock Comments 05/18 11:30 Sharp Losses Sweep Through Nearby Hog Futures Wednesday Morning Strong losses develop in nearby lean hog futures. This pressure in hog trade has put additional pressure on commercial contracts, as traders focus on cash buyer support. Cattle trade remains mixed as traders look for additional direction. By Rick Kment DTN Analyst GENERAL COMMENTS: Mixed trade is seen through the livestock futures through the end of the morning with lean hog futures holding strong pressure at midday led by the softness in the front month futures contracts. Front month live cattle futures have edged lower, limiting the support through the rest of the complex. Corn prices are higher. May corn futures are 1 cent higher. Stock markets are higher in light trade. The Dow Jones is 21 points higher while Nasdaq is up 27 points. LIVE CATTLE: Mixed trade continues to be seen through the complex as moderate support is holding in deferred contracts while light losses are seen in June and August contracts. There continues to be light volume in the market futures, which may continue through the rest of the market. Additional shifts may be delayed given the lack of direction in fundamental market movement. Cash cattle markets remain quiet with a few bids slowly developing in the South at $118. Asking prices in the South are seen at $136 to $137 and $215 and higher in the North. It may be Thursday or Friday before trade develops. Beef cut-outs at midday are higher, $0.98 higher (select) and up $2.44 per cwt (choice) with light movement of 77 total loads reported (23 loads of choice cuts, 20 loads of select cuts, 15 loads of trimmings, 19 loads of ground beef). FEEDER CATTLE: Feeder cattle futures are mixed to mostly higher although the lack of follow-through support in buyer interest and front-month support at midday. May futures have pulled back from morning gains, and are holding single-digit losses while the rest of the complex is holding a firm 20 to 40 cent gain. Light volume is expected to be seen through the rest of the complex. LEAN HOGS: Sharp losses have developed through the lean hog futures complex with triple digit pressure holding in June and July contracts. This has continued to hold the market lower through the morning which is bringing additional weakness to the rest of the complex. There is expected to be additional softness seen through the rest of the complex, although additional losses may not develop given the lack of volume in the market. Cash prices are lower on the National Direct morning cash hog report. The weighted average price fell $0.95 per cwt to $73.78 per cwt with the range from $68.00 to $76.00 per cwt on 3,683 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 315 loads selling with prices up $0.54 per cwt. Lean hog index for 5/16 is at $77.13, up 0.41 with a projected two-day index of $77.79, up 0.66. Rick Kment can be reached at rick.kment@dtn.com (ES) Copyright 2016 DTN/The Progressive Farmer. All rights reserved.