DTN Midday Livestock Comments 10/13 12:14

DTN Midday Livestock Comments 10/13 12:14 Cattle Futures Set New Contract Lows Thursday Follow-through pressure continues to develop in cattle trade Thursday morning. This aggressive market weakness has brought triple-digit weakness into live cattle and feeder cattle markets, setting contract lows back into the complex. By Rick Kment DTN Analyst GENERAL COMMENTS: Cattle futures are holding triple-digit losses at midday following aggressive morning losses. The inability to bring buyer interest back into the market through the end of the week has led to increased liquidation and sparked additional cash cattle losses. Lean hog futures are higher midday as traders are building on narrow but firm buyer support slowly stepping back into the market. Corn prices are higher in light trade. December corn futures are 8 cents lower per bushel. Stock markets are lower in light trade. The Dow Jones is 78 points lower while Nasdaq is down 31 points. LIVE CATTLE: Early pressure in live cattle futures have drawn further pressure, leading to triple-digit losses at midday. October live cattle contracts are holding losses of $1.22 per cwt, trading at $95.50 per cwt, setting contract lows and creating concerns of even more liquidation flooding into the complex. The inability to curb market losses through the month of October and widespread pressure through the entire complex continues to bring about even more pressure through the market as the week continues. Cash cattle markets continue to develop Thursday morning with light trade seen in all areas with prices similar to levels seen Wednesday. Prices are seen at $98 live basis and $154 dressed basis. This is about $3 per cwt lower than last week in the South and $4 to $5 per cwt lower in the North. The tone of the market appears to be set, and at this point it appears that cash business may be done for the week, although overall numbers of cattle moved are still relatively light. Beef cut-outs at midday are higher $1.11 higher (select) and up $0.67 per cwt (choice) with light movement of 75 total loads reported (37 loads of choice cuts, 14 loads of select cuts, 17 loads of trimmings, 7 loads of ground beef). FEEDER CATTLE: Triple-digit losses continue to hold across all feeder cattle futures as lack of support is seen in all cattle markets. The continued pressure in cash cattle markets remains a strong weakness in the complex as well as the inability to curb contract lows that keep being set every trading session. Most aggressive losses have continued to develop in deferred contracts, which are trading under $110 per cwt as traders are focusing on increased cattle supply through the summer of 2017. LEAN HOGS: Light to moderate gains continue to hold across lean hog futures although the support in the complex has pulled away from session highs based on the strong pressure holding in the cattle market. The steady but supportive moves in the lean hog market through the week continues to give confidence that buyers may continue to be building support and this may gain momentum through the end of the month. Cash prices are lower on the National Direct morning cash hog report. The weighted average price fell $1.74 per cwt to $45.10 per cwt with the range from $43.00 to $47.50 on 2,736 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 $45.10 per cwt with the range from $43.00 to $47.50 on 66 head reported sold. The National Pork Plant Report reported 131 loads selling with prices adding $0.93 per cwt. Lean hog index for 10/11 is at $52.79 down 0.03 with a projected two-day index of $52.76 down 0.03. Rick Kment can be reached at rick.kment@dtn.com (ES) Copyright 2016 DTN/The Progressive Farmer. All rights reserved.