DTN Midday Livestock Comments 08/21 11:53

DTN Midday Livestock Comments 08/21 11:53 Widespread Losses Sweep Through Livestock Contracts Cattle futures are trading at or near limit losses at midday following aggressive pressure through the stock market as well as most other commodity markets. The concern of eroding global demand has sparked widespread livestock market pressure. By Rick Kment DTN Analyst GENERAL COMMENTS: Aggressive losses are seen through the entire livestock complex with feeder cattle futures currently the only complex locked in limit down trade. The aggressive pressure in outside markets as well as concern surrounding loss of demand around the world for beef and pork is creating additional widespread liquidation. Corn prices are lower in light trade. September corn futures are 6 cents per bushel lower. Stock markets are lower in light trade. The Dow Jones is 317 points lower while Nasdaq is down 103 points. LIVE CATTLE: Despite the moderate bounce higher seen through the complex Thursday, another round of aggressive price pressure flooded through the market Friday. All nearby contracts except front month August futures are holding losses above $2.50 per cwt with several contracts flirting with limit losses. The fact that feeder cattle futures are locked in limit down trade, combined with weakness in beef values is creating additional concern for current and future support in the live cattle market. Cattle on feed reports are not expected to give the market much if any support, but may help to take the attention off of outside market pressure early next week. Cash cattle activity in the North appears to be done for the week, although it is expected that additional trade will need to be done in the South before both sides go home. But the aggressive softness in futures markets, combined with softer beef values and the upcoming cattle on feed report may leave the door wide open for some wild pricing activity before the end of the week. Beef cut-outs at midday are lower, $0.76 lower (select) and down $1.69 per cwt (choice) with light movement of 78 total loads reported (47 loads of choice cuts, 19 loads of select cuts, 1 load of trimmings, 12 loads of ground beef). FEEDER CATTLE: Feeder cattle futures have plummeted lower through morning trade with limit losses in September through January contracts bringing trade to a halt following aggressive outside market losses and sharp liquidation through stock markets. The concern of global slowdowns impacting economies around the world is not only impacting expected beef demand, but also creating concern about the ability to sustain domestic market levels. August feeder cattle futures have been limited to $2 per cwt losses, although most of the active trade has already exited the front month contracts, moving to the September and October contracts, which are being hit extremely hard over the last week. LEAN HOGS: Lean hog futures have quickly gotten tangled up in the messy downward spiral of outside markets. This lack of support through stock markets as well as wide commodity market pressure has quickly turned nearby contracts lower to the tune of triple digit losses. Trade is expected to remain light through the rest of the session, as traders looking for additional clarity early next week. Cash prices are unreported due to confidentiality on the Iowa Minnesota Direct morning cash hog report. The National Pork Plant Report reported 150 loads selling with prices falling $1.52 per cwt. Lean hog index for 8/17 is at $78.80 up 0.10, with a projected two-day index of $78.93, up 0.13. Rick Kment can be reached at [email protected] (BAS) Copyright 2015 DTN/The Progressive Farmer. All rights reserved.