DTN Midday Livestock Comments          05/23 12:02

   Livestock Futures Slide Lower

   Cash activity continues to slowly develop in the cattle market. This is 
adding pressure to futures markets at midday. Lean hog futures also remain 
aggressively lower. 

By Rick Kment
DTN Analyst



GENERAL COMMENTS: 

   Livestock future are trading sharply lower at midday as buyer support has 
evaporated through the morning. The feeder cattle complex is leading the surge 
lower with midday losses of $1 per cwt or greater in most contract months. Corn 
futures are higher at midday. July corn futures are holding 9 cent gains at 
midday. Stock markets are lower in light trade. The Dow Jones is 4 points lower 
while Nasdaq is down 7 points.

   LIVE CATTLE:

   The combination of strong gains in the grain complex as well as mixed boxed 
beef values and weaker feeder cattle futures has let to active selling 
pressure. Despite the ability to hold trading ranges in a tight pattern early 
in the session, moderate to sharp losses developed at midday. Cash cattle 
activity is starting to develop with light trade seen in the North at $202 per 
cwt. There is also light trade in the south at $124 per cwt. This is $1 per cwt 
lower than last week. Beef cut-outs at midday are mixed, $0.54 per cwt lower 
(select) and up $0.15 per cwt (choice) with light movement of 97 total loads 
reported (39 loads of choice cuts, 35 loads of select cuts, 11 loads of 
trimmings, 11 loads of ground beef).

   FEEDER CATTLE: 

   Strong losses quickly developed in the feeder cattle futures market at 
midday. The break from the narrowly mixed trade early in the session created a 
lack of buyer interest and quickly allowed nearby futures to post triple-digit 
losses in most nearby and all deferred contract markets. 

   LEAN HOGS:

   Initial support seen in the lean hog futures market has quickly eroded given 
the lack of support through the rest of the livestock market and weakness in 
cash hog prices and pork values in the morning reports. Nearby contracts are 
holding losses of 50 to 75 cents per cwt. This lack of support may draw 
additional late-day pressure due to buyers starting to check out for the week. 
Cash prices moved lower on the National Daily Direct morning cash hog report. 
The weighted average price fell $0.41 per cwt to $89.73 per cwt with the range 
from $81.00 to $91.50 per cwt on 3,590 head reported sold. The National Pork 
Plant Report posted 144 loads at midday with carcass values falling $0.34 per 
cwt. Lean hog index for 5/21 is at $93.44 up 0.15 with a projected two-day 
index of $93.49 up 0.05.

   Rick Kment can be reached at rick.kment@telventdtn.com 


(SK)

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