DTN Midday Livestock Comments 09/19 12:10

DTN Midday Livestock Comments 09/19 12:10 Livestock Futures Slide Lower Monday Morning Widespread losses quickly develop across the lean hog futures complex despite the early gains that teased the market in early trade. Cattle markets have given back a portion of last week's gains in position taking as traders continue to focus on early week market adjustments. By Rick Kment DTN Analyst GENERAL COMMENTS: Light to moderate losses are seen across cattle futures Monday as trades remain focused on pressure which is developing during the entire morning. Triple-digit losses are seen in lean hog futures as contract lows are once again being set in nearby contracts. Corn prices are lower in light trade. December corn futures are 3 cents per bushel lower. Stock markets are mixed in light trade. The Dow Jones is 20 points higher while Nasdaq is down 4 points. LIVE CATTLE: Light to moderate losses are holding midday Monday following an early week market pullback which has been sparked by widespread market buyer support seen last week. The position taking seen Monday is not unexpected, but traders are anxious to see what develops over the next couple of trading sessions to determine the next direction the cattle markets take. In order to continue to path higher, it is expected that buyers will need to step back into the market by midweek in order to show additional market support and test resistance levels once again. Cash cattle markets are quiet Monday morning with show lists mixed. It is expected that bids will not be expected until midweek or later with active trade likely being delayed until Thursday or Friday once again. Beef cut-outs at midday are midday $1.15 higher (select) and down $0.54 per cwt (choice) with moderate movement of 89 total loads reported (32 loads of choice cuts, 12 loads of select cuts, 4 loads of trimmings, 20 loads of ground beef). FEEDER CATTLE: Pressure continues to hold in feeder cattle trade, but the lack of follow through selling at midday has allowed losses to back away from session lows. The softness in the complex continues to focus on position taking following the aggressive buying activity seen last week. Front month futures put in a $5 per cwt rally in the month of September, but if buyers can redevelop by the middle of the week, it is likely that additional momentum may once again be seen and can bring in additional commercial interest back into the complex. LEAN HOGS: Initial support in lean hog futures has been short lived with new contract lows being set as support is unable to be found despite buyers attempting to move into the market early in the market. Cash markets continued to move lower and December through April futures contracts are holding strong triple-digit losses, which is creating widespread market uncertainty through the complex. The overall tone of the market continues to remain bearish as aggressive production is seen through the complex even though demand for pork remains seasonally good. Cash prices are lower on the National Direct morning cash hog report. The weighted average price fell $1.01 per cwt to $52.62 per cwt with the range from $50.00 to $54.00 on 3,300 head reported sold. Cash prices are lower on the Iowa Minnesota Direct morning cash hog report. The weighted average price fell $0.94 per cwt to $53.35 per cwt with the range from $50.00 to $54.00 on 210 head reported sold. The National Pork Plant Report reported 168 loads selling with prices falling $0.33 per cwt. Lean hog index for 9/14 is at $63.59 down 0.24 with a projected two-day index of $63.05 down 0.54. Rick Kment can be reached at rick.kment@dtn.com (ES) Copyright 2016 DTN/The Progressive Farmer. All rights reserved.