DTN Midday Livestock Comments 02/08 11:51 Cattle Trade Under Pressure Following Weaker Beef Values Moderate pressure is developing across live cattle and feeder cattle markets as traders remain concerned given the recent pressure in beef values. Hog futures are higher in light trade with front month futures gaining most of the attention through the morning. By Rick Kment DTN Analyst GENERAL COMMENTS: Livestock futures are mixed in light to moderate trade activity. Cattle futures have turned lower with concerns of moderate cash market pressure and the inability to draw support back into beef values on the morning cutout report. Hog futures remain higher at midday with front month futures leading traders higher. Corn prices are higher in light trade. March corn futures are 1 cent higher. Stock markets are lower in light trade. The Dow Jones is 49 points lower while Nasdaq is down 1 point. LIVE CATTLE: Light to moderate trade volume is seen across live cattle futures through the morning Wednesday. This is leading to additional pressure in all contracts. April futures are currently leading the market lower with 80 cent losses. Front month February futures are holding losses of 2 to 15 cents per cwt through much of the morning as market stability is being attempted by many traders. The overall lack of support in initial internet cash market trade as well as softness in beef values is adding to the late morning market pressure. The Fed Cattle Exchange Auction report today listed a total of 6,220 head, with 3,616 actually sold, and 2,604 head listed as unsold. The state-by-state breakdown looks like this: KS 533 head at $119.75-$120.25; NE 2,309 head at $115.00-$119.00; TX 575 head, at $120.25-$120.50; CO 95 head at $119.00; IA no test; other states (OK, MN) 104 head at $118.00-$119.75. The weighted average was $117.60, down from last week's weighted average of $118.82 Feedlot cash market movement remains undeveloped Wednesday morning although a few follow through bids are redeveloping in the South at the same prices as seen Tuesday. The $116 per cwt bids are unlikely to get much interest at this point and bids are undeveloped in the North. Asking prices are holding at $121 to $122 per cwt in the South and $194 to $195 in the North. Active trade is likely to be pushed off until sometime Thursday or Friday with a late Friday trade not unexpected. Beef cut-outs at midday are lower, $1.03 lower (select) and down $0.15 per cwt (choice) with active movement of 101 total loads reported (64 loads of choice cuts, 16 loads of select cuts, 4 loads of trimmings, 17 loads of ground beef). FEEDER CATTLE: Initial market stability has eroded through the morning as nearby contracts are holding losses of 40 to 60 cents per cwt. The overall pressure in live cattle futures which followed softness in beef values has created selling activity in all feeder cattle markets. There is likely to be some additional pressure seen through the end of the session, even though trade volume is likely to remain sluggish during the rest of the day. LEAN HOGS: Lean hog futures have posted sharp gains in spot month contracts with prices moving $1 per cwt higher at midday. All other contracts are posting steady to narrow gains at midday with very little activity developing through the complex. The firming cash market support continues to draw traders to the market, with February futures once again setting contract highs as traders focus on additional potential fundamental support over the near future. Cash prices are higher on the National Direct morning cash hog report. The weighted average price added $0.62 at $70.91 per cwt with the range from $66.00 to $71.50 on 2,422 head reported sold. Cash prices are higher on the Iowa Minnesota Direct morning cash hog report. The weighted average price added $0.92 at $68.23 per cwt with the range from $65.84 to $71.50 on 5,722 head reported sold. The National Pork Plant Report reported 174 loads selling with prices gaining $0.31 per cwt. Lean hog index for 2/6 is at $71.45 up $0.50 with a projected two-day index of $72.19 up $0.74. Rick Kment can be reached at email@example.com (ES) Copyright 2017 DTN/The Progressive Farmer. All rights reserved.