DTN Midday Livestock Comments 09/03 11:56

DTN Midday Livestock Comments 09/03 11:56 Sharp Gains Develop in Cattle Futures Triple-digit gains are holding in both live cattle and feeder cattle trade at midday. The ability to hold this support through closing bell will likely go a long way in helping to develop additional end of the week support to the complex. By Rick Kment DTN Analyst GENERAL COMMENTS: Livestock futures are mixed with cattle trade pushing higher. The development of triple-digit gains in both live cattle and feeder cattle markets is helping to regain some underlying support through the complex. Lean hog futures are weaker at midday with moderate losses allowing the complex to coast into the end of the week. Corn prices are lower in light trade. September corn futures are 5 cents per bushel lower. Stock markets are higher in light trade. The Dow Jones is 101 points higher while Nasdaq is up 15 points. LIVE CATTLE: Firm triple-digit gains are holding in live cattle futures at midday, although there remain questions about if buyer support will be able to hold through the end of the session. The price variability during the trading day has been very evident through the last couple of weeks, but consistency in closing the market anywhere near session highs has been lacking. Without consistent upward movement over the next couple of days, the live cattle market is going to prove very little, and likely remain in the current choppy pattern. Cash cattle markets remain generally undeveloped with bids remaining in the same range as seen over the last couple of days. Bids in the South are seen around $143 to $144 with Northern Bids of $223 to $225 per cwt. Although the desire to get business done by the end of the day exists on both sides, desire enough typically is not enough to get it accomplished, which may push activity into Friday sometime. Asking prices are at $146 to $148 per cwt in the South and $228 and higher in the North. Beef cut-outs at midday are lower, $1.02 lower (select) and down $0.78 per cwt (choice) with moderate movement of 91 total loads reported (46 loads of choice cuts, 16 loads of select cuts, 7 loads of trimmings, 22 loads of ground beef). FEEDER CATTLE: Sharp triple-digit gains have redeveloped through the feeder cattle futures market late Thursday morning with traders focusing on potential additional buyer support coming from the weakness in grain prices. But even though strong market support seen through morning trade is being looked at with a healthy dose of skepticism as traders are very aware of just how quickly any support can quickly evaporate. The ability to hold these gains into closing bell would go a long way in helping to rebuild market confidence, but this support will likely need to be seen Friday. LEAN HOGS: Moderate pressure is holding through the lean hog futures complex with early mixed trade giving way to traders trying to square positions before the weekend. Even though it is only Thursday, the expected light trade through the rest of the week could spark some additional market shifts yet Thursday. Cash prices are lower on the National Direct morning cash hog report. The weighted average price fell $1.08 per cwt to $69.85 per cwt with the range from $63.00 to $69.25 per cwt on 5,607 head reported sold. Cash prices are lower on the Iowa Minnesota Direct morning cash hog report. The weighted average price fell $1.17 per cwt to $70.43 per cwt with the range from $63.00 to $69.25 per cwt on 2,822 head reported sold. The National Pork Plant Report reported 214 loads selling with prices falling $0.04 per cwt. Lean hog index for 9/1 is at $76.88 down 0.35, with a projected two-day index of $76.39, down 0.49. Rick Kment can be reached at rick.kment@dtn.com (BAS) Copyright 2015 DTN/The Progressive Farmer. All rights reserved.