DTN Midday Livestock Comments 09/02 12:25

DTN Midday Livestock Comments 09/02 12:25 Cattle Futures Bounce Higher at Midday Aggressive pressure seen early in the complex through cattle markets have evaporated at midday. Lean hog futures continue to hold strong triple-digit gains. By Rick Kment DTN Analyst GENERAL COMMENTS: Strong gains continue to hold in lean hog futures. The focus on drawing buyers back to the live cattle and feeder cattle markets could help to draw additional trade activity into the cattle complex, although the underlying softer tone of the market may not be able to be shaken before markets close. Corn prices are lower in light trade. September corn futures are 4 cents per bushel lower. Stock markets are higher in light trade. The Dow Jones is 171 points higher while Nasdaq is up 52 points. LIVE CATTLE: Live cattle futures have bounced higher and lower through the morning with wide price swings limiting trade activity through the rest of the complex. Mixed trade is expected to hold through late morning, but this may not be able to set the tone for the weakness seen early in the session. Traders are looking for additional direction from outside markets. Cash cattle markets are quiet Wednesday morning with bids developing at $142 to $144 in the South and $222 to $225 in the North. At this point there is very little interest in generating any activity. But it is expected that both sides will try to wrap things up by the end of the day Thursday in order to spark additional activity ahead of the holiday. Asking prices are not fully developed, but around $148 to $150 per cwt in the South and $232 and higher in the North. Beef cut-outs at midday are mixed, $0.10 higher (select) and down $0.25 per cwt (choice) with moderate movement of 103 total loads reported (50 loads of choice cuts, 20 loads of select cuts, 16 loads of trimmings, 22 loads of ground beef). FEEDER CATTLE: Feeder cattle futures have bounced higher at midday after posting sharp losses earlier in the session. The reversal in buyer interest may not be able to hold, but it does help to distance current prices from setting new lows, which was a concern through most of the morning. Very little concrete support is able to be seen in the market, which could allow prices to swing in a wide range through the rest of the session. LEAN HOGS: Strong triple digit gains continue to hold in nearby contracts with traders focusing on the ability for the recent market pressure seen in hog futures to create some follow through momentum as traders look for even more support in the near future. Supporting pork values is likely to help maintain buyer interest through the near future, and potentially help draw additional activity following the Labor Day holiday. Cash prices are lower on the National Direct morning cash hog report. The weighted average price fell $1.33 per cwt to $70.94 per cwt with the range from $64.00 to $70.72 per cwt on 5,277 head reported sold. Cash prices are lower on the Iowa Minnesota Direct morning cash hog report. The weighted average price fell $1.10 per cwt to $71.70 per cwt with the range from $64.00 to $70.72 per cwt on 1,875 head reported sold. The National Pork Plant Report reported 222 loads selling with prices adding $0.58 per cwt. Lean hog index for 8/31 is at $77.23 down 0.47, with a projected two-day index of $76.88, down 0.35. Rick Kment can be reached at rick.kment@dtn.com (BAS) Copyright 2015 DTN/The Progressive Farmer. All rights reserved.