DTN Midday Livestock Comments 08/24 12:06

DTN Midday Livestock Comments 08/24 12:06 Sharp Losses Redevelop Across Cattle Trade Aggressive pressure continues to be seen through the livestock market as triple digit losses are holding across live cattle and feeder cattle trade. The inability to bring buyers back to the market is likely to add to the already strong liquidation. By Rick Kment DTN Analyst GENERAL COMMENTS: Sharp pressure is seen in cattle trade Wednesday morning with no significant support coming from either fundamental or technical factors, and causing traders to quickly liquidate positions. Pressure in lean hog futures has quickly developed through late morning. Corn prices are lower in light trade. September corn futures are 1 cent lower. Stock markets are lower in light trade. The Dow Jones is 10 points lower while Nasdaq is down 4 points. LIVE CATTLE: Sharp losses have continued to develop through live cattle futures with no sense of short or long term support seen through the market. Uncertainty of drawing short or long term support is impacting the entire complex, where most of the pressure over the last couple weeks has been driven by nearby trade activity, this move seems to have focused on pressure through the 2017 marketing year. Cash cattle markets are still untraded, although bids are more evident through the complex. Bids of $115 per cwt are redeveloping in the South, similar to Tuesday's bids, while bids of $183 per cwt are seen in the North. Asking prices remain at $120 in the South and $190 and higher in the North. Beef cut-outs at midday are higher $0.88 higher (select) and up $0.21 per cwt (choice) with moderate movement of 90 total loads reported (38 loads of choice cuts, 18 loads of select cuts, 14 loads of trimmings, 19 loads of ground beef). FEEDER CATTLE: Triple-digit losses have quickly developed through most feeder cattle futures as traders try to find a sense of market support, but so far, there has been no evidence of additional interest stepping into the market. Front-month August futures continue to hold a narrow gain based on general market inactivity, but the sharp triple digit losses through the rest of the complex have kept any attention away from this narrow support. LEAN HOGS: Pressure has continued to develop through the lean hog futures complex during the morning with the inability to spark significant support in either the cash or meat markets has pulled traders away from taking narrow losses, to more aggressive pressure through the end of the morning. Losses are holding from 30 to 60 cents per cwt lower as uncertainty about holding previous market support continues to sweep through the market. Cash prices are lower on the National Direct morning cash hog report. The weighted average price fell $1.04 per cwt to $61.70 per cwt with the range from $57.00 to $63.00 per cwt on 6,426 head reported sold. Cash prices are lower on the Iowa Minnesota Direct morning cash hog report. The weighted average price fell $0.77 per cwt to $62.43 per cwt with the range from $57.00 to $63.00 per cwt on 2,691 head reported sold. The National Pork Plant Report reported 214 loads selling with prices gaining $0.22 per cwt. Lean hog index for 8/22 is at $66.96, down 0.06 with a projected two-day index of $66.99 up 0.03. Rick Kment can be reached at rick.kment@dtn.com (CZ) Copyright 2016 DTN/The Progressive Farmer. All rights reserved.