DTN Midday Livestock Comments          05/17 12:01

   Livestock Futures Post Sharp Losses

   Active selling pressure has triggered additional technical selling pressure 
through the livestock market. This has kept both cattle and hog futures sharply 
lower at midday.  

By Rick Kment
DTN Analyst



GENERAL COMMENTS: 

   Livestock futures have posted sharp losses in both cattle and hog futures 
markets. End-of-week liquidation and lack of cash market support is adding fuel 
to the fire at midday. Corn futures are trading higher in light trade at 
midday. July corn futures are holding 12 cent gains at midday. Stock markets 
are higher in light trade. The Dow Jones is 45 points higher while Nasdaq is up 
12 points.

   LIVE CATTLE:

   Despite the ability to keep June live cattle futures contained to narrow 
losses Friday morning, the overall tone of the market has weakened further 
through the session. Other nearby contracts are holding losses of 50 to 75 
cents per cwt due to lack of buyer interest going into the weekend. The strong 
support in the dollar index and stock markets is adding to commodity market 
liquidation. Cash cattle trade is becoming more active with trade in the North 
seen at $201 per cwt. This is $1 to $2 per cwt lower than last week. Heavier 
sales activity is expected to be just around the corner, but could be drug out 
through most of the afternoon. Asking prices are holding at $126 and higher in 
the South and $203 and higher in the North, although asking prices are still 
not well defined at this point. Beef cut-outs at midday are mixed, $0.19 per 
cwt lower (select) and up $0.19 per cwt (choice) with light movement of 58 
total loads reported (29 loads of choice cuts, 22 loads of select cuts, zero 
loads of trimmings, seven loads of ground beef).

   FEEDER CATTLE: 

   Any hope of pulling the market together at the end of the week and building 
on outside market support was dashed on Friday morning. Traders are posting 
moderate to sharp losses as weakness through the livestock market is drawing 
additional trade into the complex. 

   LEAN HOGS:

   The support seen in the lean hog futures market has quickly eroded following 
technical selling below $93 per cwt in the front-month June futures. All nearby 
contracts are holding moderate to sharp losses as end-of-week positioning is 
also taking place Friday morning. July contracts continue to be the most 
aggressively sold contracts holding losses over $1 per cwt at midday. Cash 
prices moved higher on the National Daily Direct morning cash hog report. The 
weighted average price gained $0.15 per cwt to $90.37 per cwt with the range 
from $79.00 to $92.00 per cwt on 3,657 head reported sold. The National Pork 
Plant Report posted 123 loads at midday with carcass values falling $0.11 per 
cwt. Lean hog index for 5/15 is at $92.51 up 0.36 with a projected two-day 
index of $92.93 up 0.42.

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


(SK)

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