DTN Livestock Midday: Cattle Futures Tumble Lower

©Debra L Ferguson Stock Photography

Sharp follow-through losses have developed in feeder cattle trade at midday. This is putting pressure through the entire cattle market with limited volume keeping markets sluggish.

Cattle futures are under firm pressure Friday morning following increased sharp losses in feeder cattle trade. The combined shift in firming grain markets through the end of the week and general beef market pressure is leading to triple-digit losses in all feeder cattle futures.

Corn markets are higher in light trade. December corn futures are 4 cents higher. Stock markets are higher in light trade. The Dow Jones is 125 points higher while Nasdaq is up 102 points.

LIVE CATTLE:

Light-to-moderate pressure is seen in live cattle futures with losses of 2 to 40 cents per cwt through the morning. Sharp losses seen in feeder cattle trade seem to be the main driver of the pressure that has entered into the complex as traders look for increased market stability through the end of the week.

Cash cattle activity appears to be done for the week following light-to-moderate trade in all areas Thursday. Cash cattle traded at $111 live, fully steady with last week, and $173 to $174 dressed, which is $1 to $2 lower than last week.

Boxed beef cut-outs at midday are higher, $0.69 higher (select) and up $0.38 per cwt (choice) with moderate movement of 77 total loads reported (41 loads of choice cuts, 7 loads of select cuts, 15 loads of trimmings, 12 loads of ground beef).

FEEDER CATTLE:

Sharp triple-digit losses have redeveloped through the feeder cattle complex Friday morning with increased weakness seen across the entire cattle complex. This aggressive turn lower in feeder cattle futures is creating additional longer-term uncertainty through the entire market. October feeder cattle futures are leading the complex lower with a $1.80 per cwt loss, moving prices below $155 per cwt for the first time since the middle of September. This could lead to additional pressure early next week.

LEAN HOGS:

Light trade is seen in lean hog futures trade with nearby gains offsetting narrow deferred losses. The focus on firm gains in December lean hog futures is helping to limit longer-term market pressure. But losses in deferred futures seem to be limiting the overall support. Light trade is likely to be seen over the next couple hours, with limited interest.

Cash prices are unreported due to confidentiality on the National Direct morning cash hog report.

Cash prices are unreported due to confidentiality on the Iowa/Minnesota Direct morning cash hog report. The National Pork Plant Report posted 130 loads selling on the morning report.

Pork carcass values gained $0.11 per cwt at $79.31 per cwt. Lean hog index for 10/9 is at $69.34, up $0.01, with a projected two-day index of $69.28, down $0.06.

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