DTN Midday Livestock Comments 03/14 12:05

DTN Midday Livestock Comments 03/14 12:05 Widespread Weakness Develops in Cattle Futures Triple-digit losses have been seen through much of the morning across cattle trade Tuesday. Futures trade has now pulled off of session lows, although the tone of the market remains weak. By Rick Kment DTN Analyst GENERAL COMMENTS: Cattle futures continue to show widespread market weakness with live cattle futures holding a $1.15 per cwt loss. The inability for buyers to step back into the market following firm early week gains and generally stable markets early Tuesday has weakened the tone of the market at midday. Hog futures remain firmly higher with April contracts leading the recent gains with a 90 cent rally. Corn prices are higher in light trade. March corn futures are 3/4 cent lower. Stock markets are lower in light trade. The Dow Jones is 61 points lower while Nasdaq is down 32 points. LIVE CATTLE: Widespread weakness developed in live cattle trade despite the lackluster and mixed trade seen early in the session. The inability to spark additional buyer support from Monday's upward market shift has allowed widespread liquidation to quickly step back into the complex. April futures continue to lead the market lower with prices holding a $1.15 per cwt loss at midday. This has eroded prices below the $117 per cwt level, currently at $116.60 per cwt. Even at this price level, live cattle markets remain stuck in the wide trading range seen over the last two months. Cash cattle activity remains undeveloped with bids not seen in any area of cattle country at this point. It is likely that bids will not develop until Wednesday or after with trade likely to be delayed to the last half of the week. Early asking prices are scattered at best, but prices of $128 to $130 in the South and $204 to $205 can be seen through the market late Tuesday morning. The overall lack of support in futures and wholesale beef values may limit market enthusiasm through much of the week. Beef cut-outs at midday are mixed $1.52 higher (select) and down $0.23 per cwt (choice) with light movement of 48 total loads reported (28 loads of choice cuts, 11 loads of select cuts, no loads of trimmings, 9 loads of ground beef). FEEDER CATTLE: Sharp pressure quickly flooded through feeder cattle trade early Tuesday morning. This weakness lead to aggressive triple-digit pressure in all contracts through the first two hours Tuesday morning. Even though feeder cattle futures remain under pressure, prices have backed away from session lows with March through May contracts now trading 72 to 82 cents per cwt lower. Due to the light trade seen in deferred contract months, prices in fall and winter contracts are still holding triple digit losses. The underlying pressure in live cattle markets continue to bring uncertainty to the entire complex. LEAN HOGS: Strong follow through buyer support has quickly moved into the lean hog complex through the morning. April futures continue to lead the complex higher with a 92 cent per cwt rally at midday as traders focus on firmer pork values and the ability to expand early-week gains. Some additional market spreading appears to be taking place in nearby contracts following the aggressive shift lower in cattle trade. This momentum may bring additional price support to the hog complex through the rest of the session. Cash prices are lower on the National Direct morning cash hog report. The weighted average price fell $0.67 at $66.34 per cwt with the range from $61.00 to $68.25 on 4,960 head reported sold. Cash prices are lower on the Iowa Minnesota Direct morning cash hog report. The weighted average price fell $5.04 at $62.80 per cwt with the range from $61.00 to $68.00 on 250 head reported sold. The National Pork Plant Report reported 199 loads selling with prices adding $1.46 per cwt. Lean hog index for 3/10 is at $72.14 down $0.37 with a projected two-day index of $71.94 down $0.20. Rick Kment can be reached at rick.kment@dtn.com (ES) Copyright 2017 DTN/The Progressive Farmer. All rights reserved.