DTN Midday Livestock Comments 06/06 12:03

DTN Midday Livestock Comments 06/06 12:03 Sharp Losses Develop in Cattle Futures Late Monday Morning Early buying quickly developed across the livestock complex based on firming fundamental and technical support spilling over from last week. But this was short-lived as aggressive liquidation quickly developed across the cattle complex following a strong surge in grain markets and lack of follow-through volume. By Rick Kment DTN Analyst GENERAL COMMENTS: Cattle futures have turned sharply lower at midday with feeder cattle markets leading the market lower based on the aggressive buyer support in the grain market and lack of follow-through support in the rest of the cattle complex. Live cattle trade is holding firm losses of $1 to $1.40 per cwt losses, despite light volume through late morning. Corn prices are higher. July corn futures are 6 cents higher. Stock markets are higher in light trade. The Dow Jones is 60 points higher while Nasdaq is up 11 points. LIVE CATTLE: Live cattle futures prices have turned in a wide price range, starting with strong follow-through buyer support, but the lack of interest has quickly turned into a quick market reversal. Nearby contracts are holding $1 to $1.40 per cwt lower, as feeder cattle futures are holding losses between $2.50 and $3 per cwt lower, creating even more concern about the ability to sustain previous market support. The inability for boxed beef values to post solid gains through the next couple of days will also put additional concern through the entire complex. Cash cattle is quiet despite the higher cash market activity late last week. Show lists are steady, but the lack of cattle seen available for packers last week pushed prices higher, potentially allowing for a strong post-holiday rally to continue in the cash market over the month of June. It is not expected that cash market activity will develop until late in the week. Beef cut-outs at midday are mixed $0.39 lower (select) and up $1.06 per cwt (choice) with light movement of 67 total loads reported (32 loads of choice cuts, 11 loads of select cuts, no loads of trimmings, 24 loads of ground beef). FEEDER CATTLE: Sharp triple-digit losses have replaced early-morning gains in feeder cattle futures as traders are quickly started to focus on the strong buyer support across the grain complex and how this will affect the overall longer-term buyer attitude of not only feeder cattle buyers, but the recent support seen in the cattle market in general. This may spark some additional interest through the next several trading sessions. LEAN HOGS: Firm gains are holding through the lean hog complex late Monday morning with underlying support developing across all summer contracts well above $80 per cwt. The expectation that additional market gains may continue to hold through the complex in June through August contracts based on the desire to focus on tighter market support over the near future may help to draw buyer activity over the month of June. Cash prices are lower on the National Direct morning cash hog report. The weighted average price fell $1.38 per cwt to $73.63 per cwt with the range from $69.00 to $75.50 per cwt on 2,859 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 186 loads selling with prices up $0.20 per cwt. Lean hog index for 6/2 is at $76.79, down 0.09 with a projected two-day index of $77.51 up 0.81. Rick Kment can be reached at rick.kment@dtn.com (ES) Copyright 2016 DTN/The Progressive Farmer. All rights reserved.