DTN Midday Livestock Comments 03/16 12:18
Livestock Futures Erode Friday
Firm pressure is seen in the livestock complex. There is sluggish trade
activity in all markets, although the entire market is weak due to light trade.
By Rick Kment
Firm pressure is seen in all livestock futures with traders focusing on
follow through pressure in the cattle complex. This is eroding both fundamental
and technical support at the end of the week. Corn prices are lower in light
trade. May corn futures are 2 cents lower Friday. Stock markets are higher in
light trade. The Dow Jones is 225 points higher while Nasdaq is up 3 points.
Live cattle futures are holding firm losses as active pressure is seen in
the market even though trade volume is light. There is growing concerns that
additional weakness will develop through the end of March. Cash cattle trade
has slowly developed late Friday morning with light trade seen in the South at
$127 per cwt. Some additional late day activity is expected to be seen in the
north, but for now, only bids are seen at $126 to $127 per cwt. Boxed Beef
cut-outs at midday are higher, $0.86 higher (select) and up $0.73 per cwt
(choice) with light movement of 54 total loads reported (32 loads of choice
cuts, 7 loads of select cuts, 3 loads of trimmings, 12 loads of ground beef).
Light to moderate selling pressure is seen across the complex once again.
This may add even more weakness to the complex with traders holding nearby
prices at $140 per cwt. The potential for some additional late-day pressure is
developing, which could weaken not only the rest of the complex, but could keep
traders from moving back into the market early next week.
Light to moderate pressure is seen across the entire lean hog futures
complex. This may add even more weakness to the market over the weekend. Prices
are 10 cents to $1.15 per cwt lower as traders seem to be quickly backing away
from previous support. Cash prices are lower on the National Direct morning
cash hog report. The weighted average price is down $0.96 at $57.61 per cwt
with the range from $53.00 to $58.50 on 3,625 head reported sold. Cash prices
are lower on the Iowa/Minnesota Direct morning cash hog report. The weighted
average price is down $1.89 at $56.78 per cwt with the range from $53.00 to
$58.50 on 330 head reported sold. The National Pork Plant Report posted 138
loads selling with carcass values falling $0.30 per cwt. Lean hog index for
3/13 is at $66.38, down 0.29 with a projected two-day index of $65.93, down
Rick Kment can be reached at firstname.lastname@example.org
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