DTN Midday Livestock Comments 06/20 12:06

DTN Midday Livestock Comments 06/20 12:06 Cattle Futures Turn Sharply Lower Aggressive losses continue to develop through the cattle markets with additional pressure seen through the complex and concern surrounding beef demand. Hog futures are stabilizing at midday with mixed trade despite the light volume. By Rick Kment DTN Analyst GENERAL COMMENTS: Sharp triple-digit losses are holding across the cattle complex with traders intently focused on the moves in the live cattle market and general lack of support in nearby contracts. Hog futures are regaining support with mixed trade at midday. Corn prices are lower. July corn futures are 12 cents lower. Stock markets are higher in light trade. The Dow Jones is 176 points higher while Nasdaq is up 76 points. LIVE CATTLE: Sharp losses are holding across the live cattle futures with nearby contracts holding pressure of $2.50 to $2.80 per cwt at midday. The potential for late-day pressure to expand at the end of the session could easily push nearby contracts to limit losses. If this happens, expanded limits would then be in place Tuesday, creating the potential for even more volatility over the next couple of days. Cash cattle markets are quiet Monday morning with showlists generally larger. This is not a significant surprise given the lack of overall trade activity last week. Bids and asking prices are hard to pin down at this point, but may develop over the next couple of days. Beef cut-outs at midday are mixed $0.58 higher (select) and down $0.49 per cwt (choice) with light movement of 75 total loads reported (32 loads of choice cuts, 20 loads of select cuts, nine loads of trimmings, 13 loads of ground beef). FEEDER CATTLE: Widespread losses continue to hold across the feeder cattle complex with traders looking for additional support but unable to find any. Contract lows continue to be set in the market with triple-digit losses seen across the complex as traders look for even more weakness in live cattle market with contracts testing limit lows. The pressure in grain markets is keeping feeder cattle losses trimmed to about $2 per cwt, but the general lack of support in the market is likely to continue through the end of the session, and potentially during much of the weekly trade. LEAN HOGS: Mixed trade is developing at midday through the lean hog complex, replacing the narrow losses seen through the morning. Even though bearishness is holding in most other commodity markets, the continued support across the hog market is the bright spot for traders, drawing even more support back into the complex. Continued buyer support may develop through the rest of the session, although at this point there may be very limited price movement given the general lethargic trade activity. Cash prices are lower on the National Direct morning cash hog report. The weighted average price fell $0.51 per cwt to $79.30 per cwt with the range from $79.00 to $80.50 per cwt on 3,090 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 167 loads selling with prices up $0.74 per cwt. Lean hog index for 6/16 is at $82.62, up 0.43 with a projected two-day index of $82.92 up 0.30. Rick Kment can be reached at rick.kment@dtn.com (CZ) Copyright 2016 DTN/The Progressive Farmer. All rights reserved.