DTN Midday Livestock Comments 08/18 12:04

DTN Midday Livestock Comments 08/18 12:04 Cattle Futures Mixed in Light Nearby Pressure Mixed cattle trade remains pressured by the lack of support in the boxed beef values in the morning report. Softness continues to be seen in lean hog futures at midday given a pullback from previous days. By Rick Kment DTN Analyst GENERAL COMMENTS: Mixed trade is seen through the cattle market with light near term pressure offset by deferred contracts. Traders continue to focus on the ability to stabilize meat values through the end of the day, helping to spark some additional mid to late week buyer interest. Corn prices are higher in light trade. September corn futures are 3 cents per bushel higher. Stock markets are lower in light trade. The Dow Jones is 11 points lower while Nasdaq is down 18 points. LIVE CATTLE: August futures are leading the market lower with 80 cents per cwt lower with all 2015 contracts taking a defensive tone at midday. Narrow gains seen in deferred contacts are helping to set the tone of the market for long-term demand support, but it has been extremely difficult to draw buyers back into the complex in early-week trade. Prices are expected to chop around in the current trading ranges through most of the session, which could help to draw additional interest later this week. Cash cattle markets remain undeveloped with no bids seen through the morning. Even though packers are expected to need to get business done, it is likely that they will hold out as long as possible. This could once again push cash business needing to be done until Thursday or Friday. Asking prices are firming at $152 and higher in the South and $240 and higher in the North. Beef cut-outs at midday are lower, $0.17 lower (select) and down $0.06 per cwt (choice) with light movement of 77 total loads reported (52 loads of choice cuts, 15 loads of select cuts, 1 load of trimmings, 9 loads of ground beef). FEEDER CATTLE: Moderate shift through the entire cattle futures market during the morning are narrowing at midday as prices are contained in a mixed range between 10 cents lower and 17 cents higher. The lack of direction seen Tuesday comes as traders continue to try to find some additional news concerning cash values as well as traders trying to peg placement levels in the upcoming cattle on feed reports. LEAN HOGS: Lean hog futures have continued to eroded through the morning Tuesday, although some stability support is redeveloping in nearby and deferred contracts based on lack of follow-through selling pressure. Firming pork values on the morning cutout report appear to be helping draw additional interest into the complex, but at this point, it may be too early to spark additional buyer support in the complex. Cash prices are lower on the National Direct morning cash hog report. The weighted average price fell $1.64 per cwt to $73.93 per cwt with the range from $65.00 to $76.00 per cwt on 2,835 head reported sold. Cash prices are unreported due to confidentiality on the Iowa Minnesota Direct morning cash hog report. The National Pork Plant Report reported 257 loads selling with prices gaining $1.47 per cwt. Lean hog index for 8/14 is at $78.70 up 0.17, with a projected two-day index of $78.80, up 0.10. Rick Kment can be reached at rick.kment@dtn.com (BAS) Copyright 2015 DTN/The Progressive Farmer. All rights reserved.