Wide-ranging pressure is seen in the livestock markets, which continues to draw sellers back into the market. Triple-digit losses are seen in most cattle markets, which may further weaken any support later in the week. Corn prices are higher in light trade. March corn futures are 3 cents higher Monday. Stock markets are higher in light trade. The Dow Jones is 340 points higher while Nasdaq is up 62 points.
LIVE CATTLE:
Triple-`digit losses have developed across the live cattle complex. There is very limited support seen in the market at this point with very sluggish market movement developing in nearby trade. The focus on additional market shifts lower may start to impact the overall trade direction long term. Cash cattle activity remains quiet with very little market direction developing across the complex. Showlists are larger in Kansas, but steady to lower in other areas. Bids and asking prices are undeveloped and likely to remain that way until midweek. Boxed Beef cut-outs at midday are higher, $1.32 higher (select) and up $0.28 per cwt (choice) with light movement of 43 total loads reported (19 loads of choice cuts, 7 loads of select cuts, 9 loads of trimmings, 8 loads of ground beef).
FEEDER CATTLE:
Light pressure seen early in the session has expanded to triple-digit losses in most contracts. This may bring increased pressure to the entire complex as follow-through pressure is being fueled by weakness in all cattle trade as well as a weaker tone in the cattle on feed report.
LEAN HOGS:
Light to moderate pressure is developing across lean hog futures with overall lack of support seen across the entire complex. Even though initial pressure is focused on a market correction following the recent gains, the concern that prices could continue to erode lower, and take away most of the market support seen in the complex. Nearby losses are seen from 70 to 90 cents per cwt with narrow losses developing in deferred contracts. Cash prices are higher on the National Direct morning cash hog report. The weighted average price is up $0.49 at $63.10 per cwt with the range from $56.00 to $63.36 on 3,197 head reported sold. Cash prices are lower on the Iowa/Minnesota Direct morning cash hog report. The weighted average price is down $0.90 at $61.70 per cwt with the range from $56.00 to $62.00 on 257 head reported sold. The National Pork Plant Report posted 161 loads selling with carcass values adding $0.64 per cwt. Lean hog index for 2/22 is at $69.78, down 0.39 with a projected two-day index of $69.32, down 0.46.
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