DTN Midday Livestock Comments 05/17 11:58

DTN Midday Livestock Comments 05/17 11:58 Cattle Futures Shift Higher in Narrow Range Firm and steady buyer support has helped to draw buyers back into the cattle market Tuesday morning. This is pushing live cattle and feeder cattle futures higher Tuesday. By Rick Kment DTN Analyst GENERAL COMMENTS: Mixed trade in lean hog futures is creating uncertainty in the hog trade, while firmness in the cattle market is rebuilding the buyer confidence across the market. Although trade activity remains very light in all markets, the traders seem to be focusing on the lack of pressure in the complex, and could spark additional support later in the week. Corn prices are higher. May corn futures are 3 cents higher. Stock markets are lower in light trade. The Dow Jones is 92 points lower while Nasdaq is down 25 points. LIVE CATTLE: Light buyer support is trickling back into the live cattle complex. This is helping to draw additional buyer support back into the market. The support through the nearby complex is helping to draw additional long-term support to the market, but the overall lack of interest in all but front-month June futures seems to be creating lackluster interest across the complex following the triple-digit rally Monday. Cash cattle activity is at a standstill with no bids or asking prices developing across the market. It is expected that activity will be delayed until the end of the week. Beef cut-outs at midday are higher, $3.86 higher (select) and up $2.66 per cwt (choice) with light movement of 71 total loads reported (26 loads of choice cuts, 17 loads of select cuts, 14 loads of trimmings, 14 loads of ground beef). FEEDER CATTLE: Early losses in feeder cattle futures have eroded through the feeder cattle futures despite the firm support in the grain markets. May feeder cattle futures have posted triple-digit gains leading the complex higher, helping to support drive additional support into the rest of the complex. This may spark additional support into the rest of the live cattle market. LEAN HOGS: Lean hog futures Tuesday have hovered in a mixed range through most of the morning with little movement except for front-month June contracts which are holding 42 cent losses at midday, and have been holding moderate pressure through most of the morning. The rest of the complex has been unable to establish moderate pressure through the entire morning, likely holding this range through the rest of the session. Cash prices are lower on the National Direct morning cash hog report. The weighted average price fell $0.95 per cwt to $73.78 per cwt with the range from $68.00 to $76.00 per cwt on 3,683 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 248 loads selling with prices up $0.05 per cwt. Lean hog index for 5/13 is at $76.72, up 0.29 with a projected two-day index of $77.13, up 0.41. Rick Kment can be reached at rick.kment@dtn.com (ES) Copyright 2016 DTN/The Progressive Farmer. All rights reserved.