Sharp losses are seen in all livestock trade with triple-digit pressure developing in most nearby contracts. Hog futures have posted the most aggressive pressure with nearby contracts breaking through support levels that have developed in the last couple of weeks. Corn prices are lower in light trade. May corn futures are 6 cents lower Monday. Stock markets are lower in light trade. The Dow Jones is 327 points lower while Nasdaq is down 162 points.
LIVE CATTLE:
Strong pressure is developing in live cattle trade. June through October contracts are holding losses of $1.20 to $1.37 per cwt with the underlying weakness in all cattle and most outside markets sparking follow-through liquidation. The inability to bring some stability to the cattle trade is eroding not only fundamental support, but likely expected to limit the potential of technical support through the complex. Cash cattle activity remains quiet early Monday with packers focusing on collecting show lists through the morning as well as inventory taking for the next two weeks. With end of the month processing schedules in sight, packers are focusing on the ability to draw on Easter holiday needs as well as potential plant slowdowns through the last week of the month. Boxed Beef cut-outs at midday are mixed, $1.74 higher (select) and down $0.22 per cwt (choice) with light movement of 33 total loads reported (18 loads of choice cuts, 10 loads of select cuts, no loads of trimmings, 5 loads of ground beef).
FEEDER CATTLE:
Feeder cattle futures have eroded through the morning with triple digit losses seen in March through October trade. This lack of support in the cattle complex is not only adding to the longer term weakness in the complex, but also has created concerns that sharp outside market pressure will continue to draw selling pressure to the market over the near future. Even though aggressive losses are seen at midday, the entire complex is contained into a narrow trading range with all nearby futures holding losses from $1.20 to $1.22 per cwt lower.
LEAN HOGS:
Losses through lean hog trade have expanded through the morning with current losses seen from $1.20 to $2.25 per cwt. The most aggressive pressure is seen in spring and summer contracts as traders remain focused on the aggressive outside market pressure and concerns that previous buyer support will quickly erode over the near future. June futures have quickly broken through recent support levels, leaving more room for additional price pressure. This is likely to limit buyer activity in all contracts through most of the day. Cash prices are lower on the National Direct morning cash hog report. The weighted average price is down $0.46 at $59.50 per cwt with the range from $52.00 to $59.50 on 3,425 head reported sold. Cash prices are higher on the Iowa/Minnesota Direct morning cash hog report. The weighted average price is up $0.67 at $57.78 per cwt with the range from $52.00 to $59.50 on 581 head reported sold. The National Pork Plant Report posted 131 loads selling with carcass values falling $0.54 per cwt. Lean hog index for 3/15 is at $65.52, down 0.41 with a projected two-day index of $64.97, down 0.55.
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