DTN Midday Livestock Comments 09/26 11:57

DTN Midday Livestock Comments 09/26 11:57 Cattle Futures Hold Swift Losses Monday Active pressure develops quickly Monday morning across the cattle complex as sellers turn the focus to increased placements and pressure in last week's cash cattle trade. Lean hog futures are trading lower, but remain range bound. By Rick Kment DTN Analyst GENERAL COMMENTS: Strong pressure continues to hold across cattle futures with triple-digit losses developing in live cattle and feeder cattle markets. This lack of support in the market continues to create concerns about additional fundamental support. Lean hog futures remain under pressure, but are range bound through the morning, with little activity developing. Corn prices are lower in light trade. December corn futures are 6 cents lower per bushel. Stock markets are lower in light trade. The Dow Jones is 142 points lower while Nasdaq is down 43 points. LIVE CATTLE: Pressure is holding across live cattle futures with losses in all futures except October contracts posting triple-digit losses despite firm gains in beef values early in the week. The softness in cash cattle trade late last week combined with the concern that additional supplies of cattle available on the market in the future is causing many traders to once again back away from futures trade. The flat market and lack of premium between October and April contracts continues to cause concern, keeping traders from moving from one contract or seasonality. Cash activity remains quiet early Monday and is expected to remain that way the rest of the day with bids and asking prices still unestablished. The overall lack of direction in the market following lower cash trade last week may delay cash trade until the second half of the week, although pressure developing in futures trade could create follow-through concerns in the market. Beef cut-outs at midday are higher $1.33 higher (select) and up $0.28 per cwt (choice) with active movement of 108 total loads reported (46 loads of choice cuts, 22 loads of select cuts, 15 loads of trimmings, 25 loads of ground beef). FEEDER CATTLE: The combination of outside market pressure and increased placement of feeder cattle in feed yards in the month of August has created aggressive selling pressure Monday morning, pushing losses triple digits lower in most contracts. The potential to hold these losses may continue to create additional pressure through the end of the session as trades create softness in not only nearby contracts, but well into 2017 contract months. LEAN HOGS: Lean hog futures continue to hold narrow to moderate losses Monday morning as traders remain range bound between contracts lows and the inability to break above short term resistance levels based on lack of fundamental or technical support. This is creating the potential to create a "now where's land" for an extended period of time, as traders seem to have no significant desire to pull to one side or another at this time. October futures are holding at $53.35 per cwt while December futures remain comfortable hovering at $48.60 per cwt. Cash prices are lower on the National Direct morning cash hog report. The weighted average price fell $1.05 per cwt to $49.83 per cwt with the range from $49.77 to $51.00 on 3,136 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 169 loads selling with prices adding $3.10 per cwt. Lean hog index for 9/22 is at $59.88 down 0.60 with a projected two-day index of $58.93 down 0.95. Rick Kment can be reached at rick.kment@dtn.com (ES) Copyright 2016 DTN/The Progressive Farmer. All rights reserved.