DTN Midday Livestock Comments 08/24 12:10

DTN Midday Livestock Comments 08/24 12:10 Outside Market Slide Affects Cattle Futures Aggressive pressure in stock markets early Monday have led to sharp pressure in both live cattle and feeder cattle markets. Lean hog futures have been the bright spot of the complex, holding strong triple-digit gains as buyer support is developing through midday. By Rick Kment DTN Analyst GENERAL COMMENTS: Sharp losses in outside markets are ruling the day and creating direction for the market. Hog futures have been the bright spot of livestock futures and have been able to move higher despite the surrounding pressure in other markets. Feeder cattle futures remain aggressively lower with it likely that buyer support will still be hard to find through the early part of the week. Corn prices are higher in light trade. September corn futures are 3 cents per bushel higher. Stock markets are lower in active trade. The Dow Jones is 132 points lower while Nasdaq is down 27 points. LIVE CATTLE: Strong triple-digit losses are seen through the live cattle futures following the aggressive $3 to $4 per cwt losses seen in feeder cattle markets. The widespread outside market tumble driven by the stock market and global markets is creating widespread pressure that is keeping nearby and deferred live cattle markets off of fundamental market moves, and closely tied to outside makrets. Cash cattle are quiet with show lists reported as generally smaller. Asking prices are still hard to piece together, but there is some evidence of feeders asking $150 in the South, The volatility in the market may keep most offers hard to uncover until the middle of the week. Beef cut-outs at midday are steady to lower, $0.12 lower (select) and steady per cwt (choice) with light movement of 59 total loads reported (40 loads of choice cuts, 10 loads of select cuts, 2 loads of trimmings, 7 loads of ground beef). FEEDER CATTLE: Continued pressure is seen in nearby and deferred feeder cattle futures as the feeder cattle market continues to take the brunt of the beatings seen through the livestock market. The aggressive push lower in nearby contracts is holding losses of $3 to $5 per cwt through the morning, with no indication that the slow move from early lows in the stock market is giving any hope that buyers will step back into the feeder complex any time soon. LEAN HOGS: Aggressive gains have quickly flooded into the lean hog complex following the aggressive market turn lower in most other commodity markets. While early losses in the stock market moved to aggressive four digit losses in the Dow Jones Index, buyers seemed willing to embrace the already oversold lean hog futures complex. This has pushed nearby contract over $2 per cwt higher with the potential to shift to limit higher trade in front month October contracts before the end of the session. Cash prices are lower on the National Direct morning cash hog report. The weighted average price fell $0.03 per cwt to $73.85 per cwt with the range from $66.00 to $75.00 per cwt on 7,288 head reported sold. Cash prices are lower on the Iowa Minnesota Direct morning cash hog report. The weighted average price fell $0.09 per cwt to $74.95 per cwt with the range from $66.00 to $75.00 per cwt on 4,377 head reported sold. The National Pork Plant Report reported 118 loads selling with prices adding $0.39 per cwt. Lean hog index for 8/20 is at $79.09 unchanged, with a projected two-day index of $78.89, down 0.20. Rick Kment can be reached at rick.kment@dtn.com (BAS) Copyright 2015 DTN/The Progressive Farmer. All rights reserved.