DTN Midday Livestock Comments 01/12 12:05

DTN Midday Livestock Comments 01/12 12:05 Cattle Futures Continue in Triple-Digit Pressure Sharp losses continue to hold in cattle markets, although the complex has moved well off of earlier lows as traders continue to move back to what may be a more stable market shift through the end of the session. There may be some additional market direction developing in the last hour of trade based on light trade. By Rick Kment DTN Livestock Analyst GENERAL COMMENTS: Livestock futures have pulled well off of session lows due to traders running out of momentum at midday and the aggressive fundamental pressure seen in beef values seemingly having less impact as the week continues. Strong pressure continues to develop, but light trade is limiting losses through the end of the session. Corn prices are lower in light trade. March corn futures are 3 cents lower. Stock markets are lower in light trade. The Dow Jones is 108 points lower while Nasdaq is down 35 points. LIVE CATTLE: Live cattle futures continue to hold sharp losses at midday, although the pressure has eased in late morning. Traders have backed away from losses above $2 per cwt with current pressure from $1 to $1.50 per cwt lower. The uncertainty of cash market support and beef market weakness may continue to erode futures support through the rest of the complex. Cash cattle activity remains sluggish at this point with bids redeveloping at $116 in the South and $186 in the North. Asking prices are fading slightly from earlier in the week given the pressure in beef values and pressure on the futures trade. It appears that it may be late Thursday or even Friday before trade develops. Beef cut-outs at midday are lower, $1.08 lower (select) and down $0.14 per cwt (choice) with active movement of 83 total loads reported (40 loads of choice cuts, 27 loads of select cuts, 5 loads of trimmings, 11 loads of ground beef). FEEDER CATTLE: Triple-digit losses still are holding in feeder cattle futures, but losses are nearly $2 per cwt off of session lows as buyers have stepped back into the complex at midday. The overall tone of the market remains bearish with traders still backing away from early week gains, and concern of weaker beef values that have developed during the week. But for now it appears that markets may not close limit lower as was not the case earlier in the morning. Nearby futures are holding losses of $1.20 to $2 per cwt lower, but light trade may limit trade volume through the rest of the complex. LEAN HOGS: Lean hog futures have bounced off of session lows, even though trade volume has remained light through the complex. Traders remain focused on the inability to draw trade interest back into the market with prices hovering from 10 cents lower to 15 cents higher. The move back from near limit losses in cattle futures appears to be calming some of the fears in the hog complex, and bringing some stability to the futures trade near midday. Cash prices are higher on the National Direct morning cash hog report. The weighted average price fell $1.25 at $59.48 per cwt with the range from $59.18 to $61.00 on 3,238 head reported sold. Cash prices are lower on the Iowa Minnesota Direct morning cash hog report. The weighted average price fell $1.25 at $60.17 per cwt with the range from $60.00 to $60.25 on 255 head reported sold. The National Pork Plant Report reported 137 loads selling with prices adding $0.32 per cwt. Lean hog index is unreported at this time. Rick Kment can be reached at rick.kment@dtn.com (ES) Copyright 2017 DTN/The Progressive Farmer. All rights reserved.