DTN Midday Livestock Comments 03/23 12:18
Building Pressure Continues in Livestock Trade
Sharp losses have quickly developed through all livestock markets. This is
leaving increased pressure in nearby contracts and may add even more weakness
to the complex early next week.
By Rick Kment
Live cattle and lean hog futures continue to hold aggressive market losses.
Not all of the concerns are based on potential global market indicators, but
there continues to be wide speculation as to just how much impact will be seen
in the coming days and weeks. Corn prices are lower in light trade. May corn
futures are 1/2 cent lower Friday. Stock markets are lower in light trade. The
Dow Jones is 3 points lower while Nasdaq is down 40 points.
Moderate to strong pressure is seen in live cattle futures. Nearby trade is
holding losses near $2 per cwt while much less pressure is seen in the live
cattle complex. There is very little additional direction likely to be seen in
the market as current traders will likely hold positions through the end of the
day. Cash cattle trade and activity levels are quiet Friday morning with
packers and feeders likely calling it a week following the trade over the last
few days. Boxed beef cut-outs at midday are lower, $0.29 lower (select) and
down $1.09 per cwt (choice) with light movement of 67 total loads reported (35
loads of choice cuts, 8 loads of select cuts, no loads of trimmings, 3 loads of
Strong early losses seen across the entire cattle market have continued to
weaken feeder cattle futures at midday. This is posting losses of $1 to $2 per
cwt through the complex with increased pressure developing through the market.
Sluggish trade will likely be seen through the end of the day, although early
pressure is expected to hang on until closing bell.
Sharp losses have continued to develop through lean hog trade with most
aggressive pressure seen in front month contracts. This has pushed April
futures $1.82 per cwt lower with increased weakness likely to be seen through
the rest of the trading session. Cash prices are lower on the National Direct
morning cash hog report. The weighted average price is down $0.03 at $53.96 per
cwt with the range from $49.00 to $54.03 on 2,801 head reported sold. Cash
prices are unreported due to confidentiality on the Iowa/Minnesota Direct
morning cash hog report. The National Pork Plant Report posted 185 loads
selling with carcass values adding $0.25 per cwt. Lean hog index for 3/20 is at
$63.63, down 0.66 with a projected two-day index of $63.03, down 0.60
Rick Kment can be reached at firstname.lastname@example.org
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