DTN Midday Livestock Comments

GENERAL COMMENTS:

Firm pressure is seen in most livestock trade Friday. Cattle markets are leading the market lower. This may add even more weakness to the complex with traders looking for increased market direction early next week. Corn prices are lower in light trade. March corn futures are 1 cent lower Friday. Stock markets are mixed in light trade. The Dow Jones is 70 points lower while Nasdaq is up 43 points.

LIVE CATTLE:

Light to moderate pressure is trickling into the Friday session with little new information available for traders to grasp hold of before the weekend. There is likely to be some additional market weakness as traders seem to have a hard time finding a sense of stability during early March. Even though prices have fallen significantly over the last couple of weeks, the market still remains well within the sideways trading pattern due to the extremely wide trading range seen in the previous two months. This could allow prices to move higher and lower in wide ranges without any technical signals developing. Cash cattle interest is light Friday morning with just a few scattered bids developing. Most if not all of the needed and desired trade has already wrapped up over the last two days. Dressed bids are seen at $205 per cwt midday, but not much is expected to develop in any markets before the end of the week. Asking prices on cattle still on show lists are at $128 in the South and $206 and higher across the North. Boxed beef cut-outs at midday are mixed, $1.02 lower (select) and up $0.46 per cwt (choice) with light movement of 46 total loads reported (22 loads of choice cuts, 16 loads of select cuts, no loads of trimmings, 7 loads of ground beef).

FEEDER CATTLE:

Moderate pressure is seen through the complex with traders holding triple-digit losses in nearby contracts. March through May feeder cattle futures are posting the most aggressive market weakness, which is focusing on continued market pressure seen through the week as well as lack of fundamental support coming from the cattle market. There is very little technical direction seen in the feeder cattle market with prices still hovering within the wide price range set over the last two months. Even with the renewed market weakness, prices are still over $6 per cwt above support levels set during the month of December.

LEAN HOGS:

Sluggish trade is seen through the entire morning Friday with prices mixed to mostly lower. The lack of market movement through the day is limiting trade activity in most areas, and keeping most traders unwilling to break out of previous market ranges. Front month April contracts have clung onto a narrow 22 cent per cwt gain, while most other contracts are holding losses of 20 to 40 cents per cwt. Light trade volume is seen through the entire complex. This is expected to keep prices range bound through the end of the week, and bring some additional uncertainty to trade next week. Cash prices are lower on the National Direct morning cash hog report. The weighted average price is down $0.14 at $62.20 per cwt with the range from $56.00 to $62.69 on 2,806 head reported sold. Cash prices are lower on the Iowa/Minnesota Direct morning cash hog report. The weighted average price is down $1.80 at $60.51 per cwt with the range from $56.00 to $61.00 on 631 head reported sold. The National Pork Plant Report posted 193 loads selling with carcass values gaining $0.97 per cwt. Lean hog index for 2/28 is at $68.36, down 0.21 with a projected two-day index of $68.09, down 0.27.

Rick Kment can be reached at rick.kment@dtn.com

(BE)

Copyright 2018 DTN/The Progressive Farmer. All rights reserved.