DTN Midday Livestock Comments 05/27 12:11

DTN Midday Livestock Comments 05/27 12:11 Cattle Futures Maintain Moderate Gains Friday Morning Despite pulling back from session highs, cattle futures continue to hold moderate gains at midday. The focus continues to be based on pre-holiday positioning ahead of the long weekend break. By Rick Kment DTN Analyst GENERAL COMMENTS: Livestock futures are mostly higher as traders are focusing on the upcoming long holiday weekend. There is expected to be additional price adjustments through the end of the session. Corn prices are higher. July corn futures are 2 cents higher. Stock markets are higher in light trade. The Dow Jones is 38 points higher while Nasdaq is up 25 points. LIVE CATTLE: Firm gains continue to hold across the live cattle futures complex, although gains have backed away from session highs at midday. This could allow for additional market sluggishness to develop through the last hour of trade as trader volume is expected to remain weak through the end of the week. The focus on potential beef movement through the holiday weekend will allow traders to wait until well into next week before stepping back into the complex and reevaluating the complex. Cash cattle remains relatively quiet early Friday with bids redeveloping in the same price range as seen Thursday. It is uncertain how active trade may develop but the range seems to have been set. Bids are at $125 to $126 in the South and $196 to $197 in the North. Beef cut-outs at midday are $1.53 lower (select) and down $0.41 per cwt (choice) with light movement of 77 total loads reported (37 loads of choice cuts, 24 loads of select cuts, no loads of trimmings, 15 loads of ground beef). FEEDER CATTLE: Light to moderate gains are holding in the feeder cattle futures, although the focus continues squaring positions before the long holiday weekend rather than expanding trade activity. Prices have pulled back from early triple-digit gains at midday and could hold these moderate price levels given the lack of trade volume in the market. LEAN HOGS: Mixed trade continues to hold across the lean hog complex with moderate losses seen through the nearby contracts of 30 to 50 cents while similar gains are holding in deferred contracts. The lack of long-term market direction is likely to continue through the rest of the afternoon as traders are waiting to see how much weekend clearance takes place before stepping back into the market. Cash prices are lower on the National Direct morning cash hog report. The weighted average price fell $1.23 per cwt to $71.54 per cwt with the range from $63.00 to $73.00 per cwt on 2,220 head reported sold. Cash prices are unreported due to confidentially on the Iowa Minnesota Direct morning cash hog report. The National Pork Plant Report reported 137 loads selling with prices down $0.92 per cwt. Lean hog index for 5/25 is at $78.60, down 0.27 with a projected two-day index of $78.23 down 0.37. Rick Kment can be reached at rick.kment@dtn.com (ES) Copyright 2016 DTN/The Progressive Farmer. All rights reserved.