DTN Midday Livestock Comments 01/23 12:15
Cattle Futures Pull Back from Mixed Trade at Midday
Pressure redeveloped across cattle futures midday Monday. The narrow mixed
trade that developed most of the morning helped to draw additional pressure
By Rick Kment
DTN Livestock Analyst
Moderate pressure is seen at midday as cattle trade has remained choppy
through most of the morning. The overall lack of longer term direction in the
complex continues to drive sellers back into the market. Corn prices are lower
in light trade. March corn futures are 2 cents lower. Stock markets are lower
in light trade. The Dow Jones is 48 points lower while Nasdaq is down 13 points.
Live cattle futures are holding moderate losses at midday despite remaining
mixed through most of the morning. The overall lack of follow through buyer
support may continue to drive additional pressure into the complex in front of
closing bell. Cash cattle is quiet with show lists mixed to slightly higher
overall as traders continue to look for additional direction and bids
developing later in the week. Beef cut-outs at midday are mixed, $0.07 lower
(select) and up $0.58 per cwt (choice) with light movement of 60 total loads
reported (35 loads of choice cuts, 9 loads of select cuts, 7 loads of
trimmings, 9 loads of ground beef).
Feeder cattle futures have bounced higher and lower in mixed trade through
the session as traders continue to focus on the overall lack of support in live
cattle trade. Losses are seen at midday from 20 to 50 cents per cwt, which
could bring about additional pressure late in the day.
Lean hog futures remain under pressure at midday Monday, although buyers are
slowly trying to step back into the market as prices have moved off of session
lows. The long-term support in the complex continues to drive additional
uncertainty as there continues to be lack of direction on demand for pork. Cash
prices are lower on the National Direct morning cash hog report. The weighted
average price fell $1.07 at $61.81 per cwt with the range from $58.00 to $64.75
on 2,895 head reported sold. Cash prices are lower on the Iowa Minnesota Direct
morning cash hog report. The weighted average price fell $0.49 at $63.25 per
cwt with the range from $58.00 to $64.75 on 160 head reported sold. The
National Pork Plant Report reported 149 loads selling with prices falling $1.07
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 firstname.lastname@example.org
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