DTN Midday Livestock Comments 05/03 12:03

DTN Midday Livestock Comments 05/03 12:03 Live Cattle Futures Hold Narrow Gains at Midday Light to moderate gains continue to hold at midday following mixed trade through much of the morning. The light volume seen through most of the morning continues to keep traders focused on additional late-day trade activity. By Rick Kment DTN Analyst GENERAL COMMENTS: Live cattle futures have continued to hold light gains at midday after bouncing back and forth through the morning. The volatility in the livestock market continues to show the lack of overall direction and inability to set a longer-term market direction despite the strong discount already established in the complex. Hog futures have shifted lower at midday, adding concern to earlier pressure which developed Tuesday morning. Corn prices are lower. May corn futures are 14 cents lower. Stock markets are lower in light trade. The Dow Jones is 151 points lower while Nasdaq is down 57 points. LIVE CATTLE: Light to moderate gains have redeveloped in nearby live cattle futures at midday. The support through the complex is uniform, although the ability to draw additional buyer activity to the market may bring increased activity to the table through the end of the session. June futures are holding at $116 per cwt with a 25 cent per cwt gain, but the lack of support in outside markets is limiting the overall direction of the market. Cash cattle markets are inactive with both bids and asking prices undeveloped at this point. Showlists are no better than mixed which is giving very little direction to the market. Beef cut-outs at midday are mixed, $1.04 higher (select) and down $1.54 per cwt (choice) with active movement of 117 total loads reported (45 loads of choice cuts, 19 loads of select cuts, 39 loads of trimmings, 14 loads of ground beef). FEEDER CATTLE: Feeder cattle futures are mixed in a wide trading range as traders seem uninterested in stepping into the market following the steep market discounts and aggressive losses seen in the grain complex through the market. Front-month futures continue to hold gains of nearly $1 per cwt while deferred contracts are holding moderate to strong losses. LEAN HOGS: Lean hog futures have waffled back and forth through the morning as midday losses have developed after buyers have been unable to firmly develop and step into the market following the aggressive market support earlier in the week. The move higher in the complex continues to look for additional direction in both cash market direction as well as the pork complex. Cash prices are lower on the National Direct morning cash hog report. The weighted average price fell $0.91 per cwt to $68.40 per cwt with the range from $64.50 to $71.00 per cwt on 3,995 head reported sold. Cash prices higher on the Iowa Minnesota Direct morning cash hog report. The weighted average price added $0.17 per cwt to $70.76 per cwt with the range from $69.50 to $71.00 per cwt on 615 head reported sold. The National Pork Plant Report reported 156 loads selling with prices down $0.67 per cwt. Lean hog index for 4/29 is at $71.77, up 0.64 with a projected two-day index of $71.77, up 0.66. Rick Kment can be reached at rick.kment@dtn.com (ES) Copyright 2016 DTN/The Progressive Farmer. All rights reserved.