DTN Midday Livestock Comments 01/20 12:11

DTN Midday Livestock Comments 01/20 12:11 Triple-Digit Losses Sweep Through Cattle Futures Sharp losses quickly developed Friday morning in cattle futures. The overall lack of support continues to draw additional pressure in all markets. By Rick Kment DTN Livestock Analyst GENERAL COMMENTS: Live cattle futures continue to hold sharp losses with triple-digit pressure quickly developing during the morning Friday. Mixed lean hog trade has been influenced by the bearish cattle trade, but deferred hog futures continue to hold moderate gains. Corn prices are higher in light trade. March corn futures are 3 cents higher. Stock markets are higher in light trade. The Dow Jones is 48 points higher while Nasdaq is up 6 points. LIVE CATTLE: Triple-digit losses have developed through the live cattle futures as the firmness seen Thursday following strong cash cattle activity has quickly eroded. This is leaving all contracts under moderate to strong pressure, even though prices have bounced back from initial lows. This could bring additional pressure early next week, although prices still remain above support levels, and could find stability through the end of the month. Cash cattle trade appears to be wrapped up for the week following the moderate to active trade seen Thursday. Additional interest is likely to be delayed until next week. Beef cut-outs at midday are mixed, $0.49 higher (select) and down $1.36 per cwt (choice) with light movement of 62 total loads reported (33 loads of choice cuts, 10 loads of select cuts, 3 loads of trimmings, 6 loads of ground beef). FEEDER CATTLE: Front-month January futures continue to hold narrow gains with prices now 32 cents per cwt higher. But the rest of the complex which is gaining additional volume is holding moderate to strong losses. Even though pressure is seen, prices have moved back significantly from session lows seen in the market. This may bring additional softness into the complex through early January. LEAN HOGS: Narrow to moderate pressure is seen through the lean hog futures complex with traders looking for additional market direction as strong losses have developed in live cattle futures. Nearby losses are holding pressure of 15 to 75 cents per cwt, while deferred contracts are holding moderate gains of 2 to 37 cents per cwt. Overall lack of direction is expected to be seen through the rest of the complex with traders expected to keep this pattern through the end of the week. Cash prices are lower on the National Direct morning cash hog report. The weighted average price fell $0.68 at $62.27 per cwt with the range from $58.00 to $64.75 on 2,895 head reported sold. Cash prices are unchanged on the Iowa Minnesota Direct morning cash hog report. The weighted average price remains at $63.48 per cwt with the range from $58.00 to $64.75 on 810 head reported sold. The National Pork Plant Report reported 116 loads selling with prices gaining $0.38 per cwt. Lean hog index for 1/18 is at $66.69 up $0.68 with a projected two-day index of $67.01 up $0.32. Rick Kment can be reached at rick.kment@dtn.com (ES) Copyright 2017 DTN/The Progressive Farmer. All rights reserved.