DTN Midday Livestock Comments 07/11 11:42

DTN Midday Livestock Comments 07/11 11:42 Cattle Futures Hold Sharp Morning Losses Aggressive pressure early in the session Monday has continued to bring additional market liquidation into live cattle and feeder cattle futures. Triple-digit losses continue to hold at midday as fundamental or technical support remains very hard to pinpoint. By Rick Kment DTN Analyst GENERAL COMMENTS: Sharp losses continue to hold through cattle futures with the early week losses across the feeder cattle markets creating additional market uncertainty through all cattle futures. Live cattle futures are holding strong pressure with October futures leading the market lower through light morning trade. Corn prices are lower. July corn futures are 7 cents lower. Stock markets are higher in light trade. The Dow Jones is 121 points higher while Nasdaq is up 39 points. LIVE CATTLE: Losses continue to develop through live cattle futures Monday morning with nearby contracts now falling $2 per cwt or more due to continued pressure in feeder cattle markets and overall lack of support seen in cash cattle and beef cutout values. Deferred contracts continue to hold losses of $1.50 to $1.80 per cwt in light trade, although most of the focus is pointed at August and October contracts which are holding losses of $2 to $2.30 per cwt at midday. The inability to hold nearby prices above $110 per cwt could spark additional losses through the complex. Cash cattle markets remain quiet early Monday with bids and asking prices still undeveloped. The focus on show list distribution and inventory taking will likely be the main focus through the entire day. Show lists are expected to be steady to moderately larger for the week given the lack of active movement in the early part of July. Beef cut-outs at midday are lower $0.14 lower (select) and down $0.26 per cwt (choice) with light movement of 56 total loads reported (20 loads of choice cuts, 16 loads of select cuts, 7 loads of trimmings, 12 loads of ground beef). FEEDER CATTLE: Moderate to strong losses continue to develop and hold across the feeder cattle complex. Even though corn prices have eroded lower through the morning and were unable to hold initial buyer support, the focus through the complex is starting to take into account market pressure following lackluster fundamental moves in the last week. Nearby contracts are holding aggressive losses of $2 to $2.50 per cwt as the lack of buyer support could create additional widespread losses over the coming days. LEAN HOGS: Narrow losses are holding in lean hog futures early Monday with the lack of direction in the market not only limiting price pressure, but also keeping most buyers on the sidelines. If prices continue to hold the narrow losses seen through the morning, it is quite possible that light buying may trickle back into the market as traders focus on position taking given the aggressive losses in the complex over the last three weeks. Cash prices are lower on the National Direct morning cash hog report. The weighted average price fell $0.44 per cwt to $75.90 per cwt with the range from $73.00 to $77.25 per cwt on 5,337 head reported sold. Cash prices are lower on the Iowa Minnesota Direct morning cash hog report. The weighted average price fell $0.06 per cwt to $76.96 per cwt with the range from $73.00 to $77.25 per cwt on 2,042 head reported sold. The National Pork Plant Report reported 165 loads selling with prices falling $0.81 per cwt. Lean hog index for 7/7 is at $82.58, down 0.33 with a projected two-day index of $82.27 down 0.31. Rick Kment can be reached at rick.kment@dtn.com (CZ) Copyright 2016 DTN/The Progressive Farmer. All rights reserved.