DTN Midday Livestock Comments 09/10 11:59

DTN Midday Livestock Comments 09/10 11:59 Light Gains Develop in Nearby Live Cattle Futures Mixed trade is seen through the livestock complex with strong triple-digit losses developing in nearby feeder cattle futures. Light support is holding in front-month live cattle futures, creating split direction through the livestock market. By Rick Kment DTN Analyst GENERAL COMMENTS: Livestock futures are mixed to mostly lower at midday with traders focusing on lack of buyer support in cash markets while there is very little evidence that traders are willing to retract all of Tuesday's gains out of the market. This could keep both cattle and hog prices directionless through the rest of the session. Corn prices are higher in light trade. September corn futures are 4 cents per bushel higher. Stock markets are higher in light trade. The Dow Jones is 70 points higher while Nasdaq is up 37 points. LIVE CATTLE: Live cattle futures are mixed to mostly higher in nearby futures despite softness through the rest of the complex. There is some focus being placed on the inability to get cash business done, but focus on commercial buyers slowly stepping into front month futures is helping to draw light but stabile support to the entire complex. Cash cattle activity remains at a standstill, which essentially will push cash cattle trade, if any develops into Friday. The expectation is that at least light trade will have to be seen in order to supply packers with enough cattle to keep plants running at current speeds, but both sides are unwilling to budge at this point. Asking prices are at $146 and higher in the South and $235 and higher across the North. Beef cut-outs at midday are lower, $0.34 lower (select) and down $0.26 per cwt (choice) with active movement of 103 total loads reported (44 loads of choice cuts, 32 loads of select cuts, 13 loads of trimmings, 14 loads of ground beef). FEEDER CATTLE: Triple-digit losses are holding in nearby October and November contracts as traders continue to back away from early week gains. The inability for traders to gain traction from the sharp rally Tuesday may prove even more critical to the long-term support and renewed confidence in the entire cattle market. There is expected to be some additional focus at the end of the session placed on outside market moves, but nearby contracts will need to regain buyer support over the near future if prices are going to be able to break out of the recent range. LEAN HOGS: Lean hog futures remain directionless at midday with traders focusing on the lack of movement in grain markets Thursday morning as well as additional price support in cash hog markets. Prices are stuck in a narrowly mixed range of 30 cents lower to 20 cents higher although trade volume through the morning has remained extremely light. Cash prices are lower on the National Direct morning cash hog report. The weighted average price fell $0.70 per cwt to $65.72 per cwt with the range from $64.63 to $67.00 per cwt on 4,650 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 195 loads selling with prices gaining $0.39 per cwt. Lean hog index for 9/8 is at $73.92 down 0.84, with a projected two-day index of $73.08, down 0.84. Rick Kment can be reached at rick.kment@dtn.com (BAS) Copyright 2015 DTN/The Progressive Farmer. All rights reserved.