DTN Midday Livestock Comments 08/20 12:02

DTN Midday Livestock Comments 08/20 12:02 Live Cattle Futures Draw Buyer Support A strong bounce has developed through live cattle futures as traders try to back away from the sharp losses Wednesday. The focus through the complex continues to be driven by technical shifts seen over the last couple of sessions. By Rick Kment DTN Analyst GENERAL COMMENTS: Strong gains have continued to develop through the live cattle market through the morning, although support has slowed at midday which could limit additional buying activity through the rest of the session. Aggressive losses are still holding in lean hog futures with traders concerned about market supplies and lackluster demand. Corn prices are higher in light trade. September corn futures are 2 cents per bushel higher. Stock markets are lower in light trade. The Dow Jones is 263 points lower while Nasdaq is down 109 points. LIVE CATTLE: Strong gains have developed through live cattle futures as traders try to retract a portion of the aggressive midweek losses. Even with 40 to 90 cent gains seen at midday, the lack of ability to regain technical ground may not make a significant dent in price pressure earlier in the week. Cash cattle trade is likely done in the North following activity seen Wednesday. With prices $4 to $6 per cwt lower than last week it seems that packers have been able to get needed supplies to push through the next week. Southern trade needs to develop with just light trade seen in Texas Wednesday. This may be Friday before activity is seen in Kansas. Beef cut-outs at midday are mixed, $0.53 lower (select) and up $0.87 per cwt (choice) with light movement of 57 total loads reported (26 loads of choice cuts, 20 loads of select cuts, 5 loads of trimmings, 7 loads of ground beef). FEEDER CATTLE: Feeder cattle futures have slowly regained market support following sharp early morning losses. The rebound in live cattle futures is creating some support through deferred contracts, although the nearby contracts remain under pressure as August futures are holding 90 cent losses. Traders are looking for additional market direction, but the upcoming cattle on feed report may soon start to impact trader interest through the rest of the week. LEAN HOGS: Sharp losses have held through morning trade with all nearby contracts trading more than $1 per cwt lower. The lack of support in both pork values and cash markets in morning reports puts additional emphasis on the concern of abundant hog supplies available for packer's disposal. Cash prices are lower on the National Direct morning cash hog report. The weighted average price fell $0.99 per cwt to $74.45 per cwt with the range from $66.00 to $76.00 per cwt on 5,140 head reported sold. Cash prices are lower on the Iowa Minnesota Direct morning cash hog report. The weighted average price fell $1.09 per cwt to $75.33 per cwt with the range from $66.00 to $76.00 per cwt on 850 head reported sold. The National Pork Plant Report reported 188 loads selling with prices falling $1.16 per cwt. Lean hog index for 8/17 is at $78.80 up 0.10, with a projected two-day index of $78.93, up 0.13. Rick Kment can be reached at rick.kment@dtn.com (BAS) Copyright 2015 DTN/The Progressive Farmer. All rights reserved.