DTN Midday Livestock Comments 09/29 11:59

DTN Midday Livestock Comments 09/29 11:59 Cattle Futures Locked in Limit-Down Trade Sharp losses flooded back into the cattle complex as live cattle futures have fallen to new contract lows. The lack of support across the complex is creating additional momentum for the market later in the week. By Rick Kment DTN Analyst GENERAL COMMENTS: Livestock futures remain under pressure with limit-down trade holding in both live cattle and feeder cattle futures. The focus through the complex is hovering over the inability to draw additional support into beef values, and creating spillover losses in both the live cattle and feeder cattle markets. Hog futures are holding moderate gains as traders have avoided cattle market pressure. Corn prices are higher in light trade. December corn futures are 1 cent per bushel lower. Stock markets are lower in light trade. The Dow Jones is 3 points lower while Nasdaq is down 4 points. LIVE CATTLE: Live cattle futures are locked in limit-down trade of $3 per cwt through June 2016 contract months. Focus across the complex is being placed on the lackluster interest in beef values and concern that additional sharp losses will be seen in cash cattle activity through the end of the week. Cash cattle markets remain quiet with just a few bids seen in Iowa from regional packers at $198 per cwt. It is expected that dressed bids will likely be seen from $195 to $198 through the rest of the day, but given sharp futures pressure these may not hold long term either. Asking prices are still hard to pin down, but likely to range from $133 and higher in the South and $203 and higher in the North. Beef cut-outs at midday are lower, $0.83 lower (select) and down $0.93 per cwt (choice) with active movement of 111 total loads reported (37 loads of choice cuts, 34 loads of select cuts, 21 loads of trimmings, 19 loads of ground beef). FEEDER CATTLE: Market activity through futures contracts has been limited by early losses quickly moving to daily trading limits. This $4.50 per cwt loss in nearly all contracts is likely to hold through the rest of the complex, and is creating additional uncertainty given the inability to sustain last Friday's market rally. Even though October futures have not set new contract lows, the bearishness of the market is very evident. LEAN HOGS: Lean hog futures have been able to defy the aggressive cattle market slide developing through the morning as hog traders are clearly focused and tuned into firmness in cash and hog values, and so far has not allowed the clatter and clashing in the cattle market affect the momentum. Front month October futures are holding $1.32 per cwt gains, with the rest of the complex holding moderate gains of 30 to 60 cents per cwt. Cash prices are higher on the National Direct morning cash hog report. The weighted average price added $1.42 per cwt to $69.48 per cwt with the range from $66.96 to $71.50 per cwt on 8,535 head reported sold. Cash prices are higher on the Iowa Minnesota Direct morning cash hog report. The weighted average price added $1.20 per cwt to $71.03 per cwt with the range from $69.00 to $71.50 per cwt on 5,170 head reported sold. The National Pork Plant Report reported 234 loads selling with prices up $1.06 per cwt. Lean hog index for 9/25 is at $71.86 up 0.05, with a projected two-day index of $72.01, up 0.15. Rick Kment can be reached at [email protected] (BAS) Copyright 2015 DTN/The Progressive Farmer. All rights reserved.