DTN Midday Livestock Comments 09/08 12:12

DTN Midday Livestock Comments 09/08 12:12 Cattle Futures Rally Higher Tuesday Triple-digit gains have quickly developed and held through morning trade with nearby feeder cattle futures expanding gains over $2 per cwt higher. Live cattle buying is attempting to keep up, although no additional fundamental market direction is yet seen through the complex. By Rick Kment DTN Analyst GENERAL COMMENTS: Triple-digit gains are developing through the cattle complex with feeder cattle futures leading the move higher. Traders in the live cattle market have very little fundamental market information to go on, but the strong support in feeder cattle trade is helping to sweep additional buyer interest back into the market. Gains across the lean hog complex remain much more stable, as traders are taking a more thoughtful approach to drawing buyer interest back into the complex. Corn prices are higher in light trade. September corn futures are 3 cents per bushel higher. Stock markets are higher in light trade. The Dow Jones is 299 points higher while Nasdaq is up 93 points. LIVE CATTLE: Triple-digit gains have redeveloped through the morning following strong moves higher in the feeder cattle market. The focus through the complex are being placed on the expectation that sharp late-week pressure before the holiday weekend is drawing a combination of short covering as well as the expectation that firming outside markets may draw new commercial interest back into the market. Cash cattle activity levels remain quiet with show list distribution and inventory taking the main agenda of the day. Show lists are expected to be mixed to generally lower early in the week, although the focus will be placed on the short week of work that packers have ahead of them. Bids are undeveloped and may remain that way until midweek or later, but feeders are going to be trying to limit losses after the last three weeks of tumbling prices. Beef cut-outs at midday are mixed, $0.53 higher (select) and down $0.87 per cwt (choice) with light movement of 90 total loads reported (56 loads of choice cuts, 13 loads of select cuts, no loads of trimmings, 20 loads of ground beef). FEEDER CATTLE: Early trade has rallied beyond the late week pressure which developed Friday. At this point it is going to be hard to hold the gains too securely given the back and forth moves in cattle trade over the last couple of weeks. The expectation that buyers have is that with Labor Day Weekend, now behind them, trade interest will focus on the longer term support and potentially draw firming prices into the market through the fall. Nearby feeder cattle contracts are holding gains between $2 and $2.60 per cwt at midday, but the depth behind this new price support is still uncertain. LEAN HOGS: Front-month October futures continue to trade in a narrow range, dipping into negative territory at midday. But the losses are kept in check by the moderate support seen through the rest of the complex. There will be some additional focus as the week continues no both outside market support and the ability to rekindle fundamental support heading into the rest of September. Cash prices are lower on the National Direct morning cash hog report. The weighted average price fell $1.34 per cwt to $65.63 per cwt with the range from $65.30 to $67.00 per cwt on 3,395 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 216 loads selling with prices gaining $0.36 per cwt. Lean hog index for 9/3 is at $75.54 down 0.85, with a projected two-day index of $74.76, down 0.78. Rick Kment can be reached at rick.kment@dtn.com (BAS) Copyright 2015 DTN/The Progressive Farmer. All rights reserved.