DTN Midday Livestock Comments 09/17 12:01

DTN Midday Livestock Comments 09/17 12:01 Hog Buying Resumes Thursday Traders in the hog complex focused on the fact that the cattle induced losses across the lean hog market Wednesday held very little justification. This sparked strong price gains, with front-month October futures limited to $3 per cwt gains at one point in the morning. By Rick Kment DTN Analyst GENERAL COMMENTS: Sharp gains have quickly moved back into the lean hog futures market, as traders try to break away from previous moves in the cattle market and focus on the hog industry direction. This has pointed to triple-digit gains through all nearby contracts. Cattle futures remain lower as morning buyer support has faded quickly. Corn prices are lower in light trade. December corn futures are 4 cents per bushel lower. Stock markets are higher in light trade. The Dow Jones is 16 points higher while Nasdaq is up 16 points. LIVE CATTLE: Live cattle futures are mixed in a moderate range Thursday morning The early support which tried to get a foothold in the complex has been unable to withstand the renewed softness in beef values and concern that even at current prices, markets may remain under pressure over the near future. Cash cattle has been seen in Kansas at $136 per cwt. This is $4 per cwt lower than last week, and creating the expectation trade may be done for the week. The concern in the market is that additional softness may develop due to lack of support through the rest of the complex. Beef cut-outs at midday are lower, $2.69 lower (select) and down $1.43 per cwt (choice) with light movement of 85 total loads reported (36 loads of choice cuts, 28 loads of select cuts, 2 loads of trimmings, 19 loads of ground beef). FEEDER CATTLE: Feeder cattle futures have moved back and forth through the morning with light to moderate gains unable to stand additional pressure through the complex. There is some concern that further triple-digit losses through the second half of the session could send another flood of limit-down or near-limit selling pressure back into the complex. LEAN HOGS: Sharp buyer support has flooded back into the lean hog futures complex Thursday with traders focusing on the potential of breaking away from previous weakness in cattle trade. The focus through the complex is being placed on front-month October futures which have touched limit higher trade midmorning. Cash prices are unreported due to confidentiality on the National Direct morning cash hog report. Cash prices are unreported due to confidentiality on the Iowa Minnesota Direct morning cash hog report. The National Pork Plant Report reported 233 loads selling with prices slipping $0.86 per cwt. Lean hog index for 9/14 is at $71.44 down 0.50, with a projected two-day index of $70.98, down 0.46. Rick Kment can be reached at rick.kment@dtn.com (BAS) Copyright 2015 DTN/The Progressive Farmer. All rights reserved.