DTN Midday Livestock Comments 12/27 11:59

DTN Midday Livestock Comments 12/27 11:59 Early Pressure Easing Through Midday Livestock futures remain under light to moderate pressure in most contracts. The focus on post-report adjustments pushed prices firmly lower early in the session. By Rick Kment DTN Livestock Analyst GENERAL COMMENTS: Light to moderate pressure is seen through the livestock market as traders continue to focus on adjusted market trade after the USDA report on cattle on feed, as well as reports on hogs and pigs Friday. Trade remains sluggish with many traders still out of the market on Christmas vacation. Livestock futures remain under light to moderate pressure in most contracts. The focus on post-report adjustments pushed prices firmly lower early in the session. However, light activity has limited follow-through selling pressure. Corn prices are higher in light trade. March corn futures are 7 cents higher. Stock markets are higher in light trade. The Dow Jones is 16 points higher while Nasdaq is up 27 points. LIVE CATTLE: Mixed trade is seen through the complex as traders focus on additional market activity and pressure in feeder cattle trade affecting most deferred contracts. The firm support in front-month December contracts has more to do with light trade as contracts get ready to expire, than the overall focus of buyer support moving into the market. Moderate pressure is seen in all other live cattle contracts, although trade activity remains sluggish. Cash cattle markets are quiet with show lists the only development through the week. Show lists are generally steady for the week. Bids and asking prices are still unavailable; they're likely delayed until the last half of the week. Beef cut-outs at midday are mixed, $3.01 higher (select) and down $1.14 per cwt (choice) with light movement of 38 total loads reported (17 loads of choice cuts, 8 loads of select cuts, 6 loads of trimmings, 8 loads of ground beef). FEEDER CATTLE: Moderate losses are seen through the complex Tuesday morning as traders have backed away slightly from the early losses, but the overall lack of follow-through selling may limit the downside of the market through much of the morning. Traders may continue to focus on the firm pressure in front-month January contracts as they focus on growing placement numbers and assess how this may affect the long-term direction of the market. LEAN HOGS: Lean hog futures have backed away from early pressure with prices currently mixed in extremely sluggish trade. The overall lack of activity in the market is likely to add to additional market pressure, although some traders may try to cover short positions when given the chance. Choppy trade is likely to be seen through the rest of the session. Cash prices are lower on the National Direct morning cash hog report. The weighted average price fell $0.79, at $51.38 per cwt, with the range from $45.00 to $52.50 on 4,568 head reported sold. Cash prices are not reported due to confidentiality on the Iowa Minnesota Direct morning cash hog report. The National Pork Plant Report is unreported at this time. Lean hog index is not reported at this time. Rick Kment can be reached at rick.kment@dtn.com (ES) Copyright 2016 DTN/The Progressive Farmer. All rights reserved.