Friday Midday Livestock Market Summary - Markets Soften

GENERAL COMMENTS:

Livestock futures have remained generally quiet early Friday morning, with increased focus on the afternoon release of the cattle on feed report. Although limited additional cash market activity is expected to be seen until late afternoon, the early movement of steady price levels from last week's levels may set the overall trend of the market for the week. Hog markets remain under light pressure, but little additional fundamental news has developed during late-week trade. December corn is down 2 3/4 at $5.278 and December soybean meal is down $14.10 at $357.20. The Dow Jones Industrial Average is down 222.87 at 51,555.17.

LIVE CATTLE:

Live cattle futures bounced higher in initial early trade. Although the expected increase in cattle on feed numbers likely to be seen in the afternoon release of the cattle on feed report seems to be essentially worked through current price levels. But trade has slowed through the morning, allowing prices to falter in most nearby contracts. This is following the general trend of light to moderate losses over the last few days. In cash cattle trade, following Thursday's light trade where dressed cattle sold at mostly $350 (steady with last week's weighted average), the cash cattle market remains quiet at Friday's start. No bids are currently on the table, and it's likely that trade could be delayed until after today's Cattle on Feed report is released and fully assessed. October live cattle are $0.05 lower at $215.60, December live cattle are $0.25 lower at $216 and February live cattle are $0.43 lower at $216.85. 

Boxed beef prices are mixed: choice down $0.82 ($371.33) and select up $1.82 ($353.70), with a movement of 64.70 loads (50.09 loads of choice, 3.43 loads of select, 3.36 loads of trim and 7.82 loads of ground beef).

FEEDER CATTLE:

Feeder cattle futures have shown the most significant pressure through livestock trade Friday morning. Although the expectation is that overall placements will be reduced from year-ago levels, the concern about continued marketing levels and overall demand seems to be limiting feeder cattle markets during Friday morning trade. Although limited support initially developed Friday, this momentum was short-lived and gave way to moderate to firm pressure at midday. Although, to be fair, very little new fundamental or technical information seems to be available at this point.

September feeders are $1.23 lower at $333.60, October feeders are $1.05 lower at $323.325 and November feeders are $0.83 lower at $317.825.

LEAN HOGS :

Lean hog futures are holding moderate losses with light pressure seen in front-month October contracts, although deferred contracts are holding losses near $1 per cwt at midday. The lack of new information through the market during late-week trade and traders seemingly focused more on cattle and grain trade through the end of the week has allowed hog futures to shift lower due more to lack of interest than any other factor. October lean hogs are $0.35 lower at $78.55, December lean hogs are $0.58 lower at $69.025 and February lean hogs are $0.78 lower at $70.35. Hog Prices are unreported due to confidentiality on the Daily Direct Morning Hog report. Pork Cutouts totaled 157.75 loads, with 148.20 loads of pork cuts and 9.55 loads of trim. Pork cutout values are down $0.59 at $86.65.