Wednesday, July 17, 2013

DTN Midday Comments on Livestock; Live Cattle, Feeder Cattle, and Lean Hogs

Live Cattle Futures Fall on Technical Pressure

Technical selling pressure has developed through the cattle complex. This has pushed nearby contracts moderately to sharply lower in both the feeder cattle and live cattle markets. Lean hog contracts are mixed in a moderate range, although volume remains light.
By Rick Kment DTN Analyst

GENERAL COMMENTS:
Cattle futures continue to post moderate to sharp losses at midday driven by technical pressure in the live cattle futures market. Feeder cattle futures are posting the most aggressive nearby contract losses, but the inability of live cattle to hold initial stability seems to be directing trade activity. Lean hog futures are mixed with the pressure in nearby contracts being balanced by light buyer interest in deferred contract months. Corn futures are lower at midday. September corn futures are holding 5 cent losses at midday. Stock markets are lower in higher trade. The Dow Jones is 10 points higher while Nasdaq is up 13 points.
LIVE CATTLE:
Even though early trade remained extremely uneventful, selling pressure quickly developed through the live cattle futures markets. This has pushed nearby contracts between 70 and 95 cents per cwt lower, with current price levels testing support levels. A break below last week’s low in August contracts of $121.17 per cwt could trigger additional liquidation through the last half of the trading session. 

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