DTN Midday Livestock Comments 01/11 11:59

DTN Midday Livestock Comments 01/11 11:59 Cattle Futures Slip Lower on Weaker Beef Values Strong pressure in beef values Wednesday morning have quickly limited buyer support across the cattle market. There continue to be expectations of strong cash market support through the end of the week, but lack of follow through in wholesale beef prices may limit upward futures market movement. By Rick Kment DTN Livestock Analyst GENERAL COMMENTS: Moderate pressure is redeveloping through the entire cattle complex following sharp triple-digit losses in beef cutout values on the morning report Wednesday. The potential for strong gains in cash cattle trade and recent futures gains in live cattle and feeder cattle markets leaves the market unsettled given the pressure in beef values. Hog futures have rallied midday based on support in cash and pork cutout values. Corn prices are lower in light trade. March corn futures are 4 cents lower. Stock markets are mixed in light trade. The Dow Jones is 18 points higher while Nasdaq is down 15 points. LIVE CATTLE: Live cattle futures have tumbled lower at midday despite strong buyer interest moving into the market midmorning. Sharp losses in morning boxed beef values has quickly pulled buyers back out of the market. This may spark additional uncertainty in the entire cattle complex. There will continue to be a strong focus on the ability to push cash cattle trade sharply higher, but the limited interest seems to be curbing buyer support at this point. Front month February futures are holding losses of 50 cents per cwt, while the rest of the complex remains 47 to 82 cents lower. Cash cattle markets are generally undeveloped with a few initial bids starting to develop in the South at $116 per cwt. Asking prices remain at $122 in the South and $195 and higher in the North. It is likely that most trade will develop Thursday or Friday. The Fed Cattle Exchange Auction report today listed a total of 5,841 head, with 4,046 actually sold. The state by state breakdown is: KS 366 head at 119.00-120.00, NE 3,201 head at 118.00-120.00; TX 479 head, at 119.50-120.00; CO no test; IA no test; other states no test. The weighted average was 119.16, up from last week's weighted average of 116.77. Beef cut-outs at midday are lower, $2.06 lower (select) and down $2.96 per cwt (choice) with active movement of 101 total loads reported (52 loads of choice cuts, 9 loads of select cuts, 9 loads of trimmings, 31 loads of ground beef). FEEDER CATTLE: Light pressure is seen in feeder cattle futures at midday following choppy up and down price shifts during the morning Wednesday. The most recent pressure seen in the complex has been focused on the renewed pressure seen in live cattle futures associate with sharp pressure in beef values. Trade at midday is holding losses of 22 to 72 cents per cwt. This could bring about additional softness through the complex, and may keep prices volatile during the end of the trading session Wednesday. LEAN HOGS: Strong gains have quickly redeveloped through nearby lean hog futures following additional support in cash hog values while additional strong support is seen in wholesale pork values through the morning. Front month February futures are holding gains of 95 cents per cwt as traders remain focused on the ability to quickly and aggressive draw traders from the sidelines through the early part of January. Cash prices are higher on the National Direct morning cash hog report. The weighted average price added $0.33 at $59.01 per cwt with the range from $56.00 to $62.75 on 5,262 head reported sold. Cash prices are higher on the Iowa Minnesota Direct morning cash hog report. The weighted average price added $1.71 at $58.11 per cwt with the range from $56.00 to $62.75 on 2,422 head reported sold. The National Pork Plant Report reported 186 loads selling with prices adding $3.27 per cwt. Lean hog index for 1/9 is at $59.61 up $0.76 with a projected two-day index of $60.73 up $1.12. Rick Kment can be reached at rick.kment@dtn.com (ES) Copyright 2017 DTN/The Progressive Farmer. All rights reserved.