DTN Midday Livestock Comments 12/30 12:06

DTN Midday Livestock Comments 12/30 12:06 Cattle Futures Slide Lower in Light Trade Extremely light pre-holiday trade volume has allowed for livestock markets to shift in a wide price range. Triple-digit losses are seen in most cattle futures due primarily to the lack of trade volume and market interest before the long holiday weekend. By Rick Kment DTN Livestock Analyst GENERAL COMMENTS: Strong pressure has flooded into cattle futures late morning across the cattle complex. The overall lack of market activity has been the main driver of the wild price swings through the entire livestock market. Corn prices are higher in light trade. March corn futures are 1 cent higher. Stock markets are lower in light trade. The Dow Jones is 33 points lower while Nasdaq is down 47 points. LIVE CATTLE: Firm gains are holding in the front month December contracts which are getting ready to expire. But sharp losses have flooded into the rest of the complex with losses seen $1 to $2.50 per cwt lower in most nearby contracts. The overall lack of volume in the market is expected to continue to drive additional price movements back into the market. Cash cattle trade is trickling into the market with prices seen at $118 on a live basis. Bids are seen in the north at $190 dressed basis, but so far no active trade is reported on live basis. It is likely that additional trade will develop through the next few hours. Asking prices remain at $120 and higher live basis. Beef cut-outs at midday are lower, $0.21 lower (select) and down $0.16 per cwt (choice) with light movement of 43 total loads reported (18 loads of choice cuts, 11 loads of select cuts, 4 loads of trimmings, 10 loads of ground beef). FEEDER CATTLE: Sharp losses have quickly moved into feeder cattle futures midday Friday as the incredibly light trade activity is allowing for markets to fall quickly through the end of the session. Trade volume is expected to remain quiet until the middle of next week when traders return from holiday vacations. Even though prices are currently holding losses of $2 per cwt, the potential for prices to shift significantly through the last couple hours of trade could bring additional uncertainty to the market. LEAN HOGS: Lean hog futures have bounced higher and lower through the morning with very little market consistency seen at the end of the week. Trade volume remains extremely light, which is limiting market consistency at the end of the year. Essentially no additional news or direction is seen in either fundamental or technical factors, which continues to allow traders to shift higher and lower through the rest of the session. Cash prices are lower on the National Direct morning cash hog report. The weighted average price fell $0.48 at $51.32 per cwt with the range from $45.00 to $52.50 on 3,730 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 177 loads selling with prices falling $0.10 per cwt. Lean hog index for 12/28 is at $57.98 up $0.03 with a projected two-day index of $57.76 down $0.22. Rick Kment can be reached at rick.kment@dtn.com (ES) Copyright 2016 DTN/The Progressive Farmer. All rights reserved.