DTN Midday Livestock Comments 07/01 12:02

DTN Midday Livestock Comments 07/01 12:02 Light Trade Activity Draws Pressure to Cattle Futures Sharp triple-digit losses have quickly developed across the cattle complex Friday morning. The overall lack of trade activity and inability to draw additional interest into the market before the long holiday weekend is allowing for volatile price swings Friday morning. By Rick Kment DTN Analyst GENERAL COMMENTS: Sharp losses have developed across cattle trade through the end of the session with traders focusing on the lack of trade involvement in front of the long holiday weekend. Markets will remain closed Monday for the Fourth of July, opening at regular times Tuesday morning. Corn prices are lower. July corn futures are 3 cents lower. Stock markets are higher in light trade. The Dow Jones is 25 points higher while Nasdaq is up 20 points. LIVE CATTLE: Sharp losses have trickled into the live cattle complex at midday Friday. The lack of direction early in the session has quickly turned to market pressure. The lack of trade interest and limited trader involvement ahead of the holiday weekend is expected to be the main focus of the sharply lower price levels through the cattle complex. Even though strong cash market support was seen through the week, the inability to draw enough support as traders were willing to exit the market early may continue to drive prices lower. Cash cattle markets are generally quiet Friday morning following moderate trade at sharply higher prices Thursday. A few cattle were sold in Nebraska through the morning at $195 to $196 per cwt, which is steady with Thursday's prices. Bids are seen at $122 live basis in all areas, but so far no trade is reported. The expectation is that most of the cash business is likely wrapped up for the week, as both sides look eagerly toward the upcoming holiday weekend. Beef cut-outs at midday are mixed $1.43 lower (select) and up $0.22 per cwt (choice) with light movement of 92 total loads reported (48 loads of choice cuts, 27 loads of select cuts, no loads of trimmings, 17 loads of ground beef). FEEDER CATTLE: What started out as a narrowly mixed market through most of the morning has turned sharply lower with front month August futures holding losses of $2 per cwt or greater at midday. Overall market direction is being affected by the lack of trade activity in the complex as many traders have already left the market for the long holiday weekend. This light trade volume and lack of active trade interest could continue to allow for wild price swings through the end of the session. All nearby contracts are holding triple-digit losses while deferred futures are maintaining moderate to strong gains based on the lack of trade activity. LEAN HOGS: Lean hog futures are mixed in a wide price range Friday morning due to the overall lack of market direction and light trade participation. Prices range from 65 cents lower to 77 cents higher as the few traders who are in the market are taking advantage of the wide market swings and reestablishing positions on the first day of July. Trade activity is expected to remain subdued through the rest of the session although price volatility may remain high. Cash prices are lower on the National Direct morning cash hog report. The weighted average price fell $1.39 per cwt to $76.96 per cwt with the range from $71.00 to $79.00 per cwt on 2,625 head reported sold. Cash prices are lower on the Iowa Minnesota Direct morning cash hog report. The weighted average price fell $1.56 per cwt to $77.51 per cwt with the range from $71.00 to $79.00 per cwt on 455 head reported sold. The National Pork Plant Report reported 169 loads selling with prices gaining $1.15 per cwt. Lean hog index for 6/28 is at $85.03, up 0.17 with a projected two-day index of $84.91 down 0.12. Rick Kment can be reached at rick.kment@dtn.com (CZ) Copyright 2016 DTN/The Progressive Farmer. All rights reserved.