DTN Midday Livestock Comments 10/08 12:04

DTN Midday Livestock Comments 10/08 12:04 Strong Buyer Support Surfaces Midday Cattle futures have moved higher Thursday morning as early morning pressure has been quickly replaced by moderate to strong buyer support. Hog futures remain moderately mixed following firming pork prices in morning cutout reports. By Rick Kment DTN Analyst GENERAL COMMENTS: Early market pressure through cattle and hog futures has slowly backed out of the market, allowing for moderate to strong buyer support to redevelop. Feeder cattle futures are holding gains near $2 per cwt in front month October futures while nearby live cattle contracts are on either side of $1 per cwt higher. Hog futures have backed away from early losses, although narrow nearby gains are being offset by continued deferred market pressure. Corn prices are lower in light trade. December corn futures are 3 cents per bushel lower. Stock markets are mixed in light trade. The Dow Jones is 31 points higher while Nasdaq is down 31 points. LIVE CATTLE: Narrow to moderate losses held through most of the morning in live cattle futures, but increased buyer interest stepped back into the market with October futures trading $1 per cwt higher. The rest of the live cattle complex remains moderately higher based on the expectation that beef values will continue to bounce higher and eventually pull cash cattle prices higher. Cash cattle activity remains dead in the water with just a few bids seen Thursday around $118 in the South and $182 in the North. Both sides seem to be unwilling to aggressively point to any market movement at this point, as they wait for additional direction from futures trade. Asking prices are hovering around $128 in the South and $203 and higher in the North. Beef cut-outs at midday are higher, $0.30 higher (select) and up $1.39 per cwt (choice) with active movement of 147 total loads reported (65 loads of choice cuts, 34 loads of select cuts, 7 loads of trimmings, 40 loads of ground beef). FEEDER CATTLE: Strong triple-digit gains have developed midday in feeder cattle futures with front month October contracts holding the most significant rally at $1.80 per cwt. The bullishness seen over the past two trading sessions has quickly been redeveloped through feeder cattle futures even though fundamental support has yet to be seen. LEAN HOGS: Light buyer support has trickled back into the complex Thursday late morning following renewed buyer support in the cattle complex. Although gains remain light through most of the morning, the ability to hold prices at this level could spark additional interest late in the week. Cash prices are lower on the National Direct morning cash hog report. The weighted average price fell $1.26 per cwt to $69.94 per cwt with the range from $63.00 to $72.00 per cwt on 6,491 head reported sold. Cash prices are lower on the Iowa Minnesota Direct morning cash hog report. The weighted average price fell $1.27 per cwt to $71.63 per cwt with the range from $63.00 to $72.00 per cwt on 656 head reported sold. The National Pork Plant Report reported 196 loads selling with prices up $2.02 per cwt. Lean hog index for 10/5 is at $73.75 up 0.37, with a projected two-day index of $74.29, up 0.54. Rick Kment can be reached at rick.kment@dtn.com (BAS) Copyright 2015 DTN/The Progressive Farmer. All rights reserved.