Friday Midday Livestock Market Summary - Building Pressure Continues in Livestock Trade

GENERAL COMMENTS: 

Live cattle and lean hog futures continue to hold aggressive market losses. Not all of the concerns are based on potential global market indicators, but there continues to be wide speculation as to just how much impact will be seen in the coming days and weeks. Corn prices are lower in light trade. May corn futures are 1/2 cent lower Friday. Stock markets are lower in light trade. The Dow Jones is 3 points lower while Nasdaq is down 40 points.

LIVE CATTLE:

Moderate to strong pressure is seen in live cattle futures. Nearby trade is holding losses near $2 per cwt while much less pressure is seen in the live cattle complex. There is very little additional direction likely to be seen in the market as current traders will likely hold positions through the end of the day. Cash cattle trade and activity levels are quiet Friday morning with packers and feeders likely calling it a week following the trade over the last few days. Boxed beef cut-outs at midday are lower, $0.29 lower (select) and down $1.09 per cwt (choice) with light movement of 67 total loads reported (35 loads of choice cuts, 8 loads of select cuts, no loads of trimmings, 3 loads of ground beef).

FEEDER CATTLE:

Strong early losses seen across the entire cattle market have continued to weaken feeder cattle futures at midday. This is posting losses of $1 to $2 per cwt through the complex with increased pressure developing through the market. Sluggish trade will likely be seen through the end of the day, although early pressure is expected to hang on until closing bell.

LEAN HOGS:

Sharp losses have continued to develop through lean hog trade with most aggressive pressure seen in front month contracts. This has pushed April futures $1.82 per cwt lower with increased weakness likely to be seen through the rest of the trading session. Cash prices are lower on the National Direct morning cash hog report. The weighted average price is down $0.03 at $53.96 per cwt with the range from $49.00 to $54.03 on 2,801 head reported sold. Cash prices are unreported due to confidentiality on the Iowa/Minnesota Direct morning cash hog report. The National Pork Plant Report posted 185 loads selling with carcass values adding $0.25 per cwt. Lean hog index for 3/20 is at $63.63, down 0.66 with a projected two-day index of $63.03, down 0.60