DTN Midday Livestock Comments 06/07 12:09

DTN Midday Livestock Comments 06/07 12:09 Light Gains Hold in Cattle futures Tuesday Morning Light to moderate support is holding Tuesday following the strong pullback early in the week. What started out as short covering activity has gained moderate trade activity, although overall trade volume remains light throughout the complex, limiting the movement of prices through the trading session. By Rick Kment DTN Analyst GENERAL COMMENTS: Light to moderate buyer support is expected to develop through the complex as traders may continue to step back into the market following the liquidation Monday. Firm gains are holding in live cattle futures Tuesday, but this support is thin, driven by light volume, and lack of direction in outside markets. Corn prices are lower. July corn futures are 2 cents lower. Stock markets are higher in light trade. The Dow Jones is 74 points higher while Nasdaq is up 9 points. LIVE CATTLE: Firm gains are developing through the live cattle futures complex. The support through the complex continues to hold in the market as traders look for increased market interest and the ability to hopefully keep buyers interested following the strong pressure early in the week. Cash cattle activity remains light with just a few asking prices seen at $210 in the North and $130 to $132 in the South. One regional packer is bidding $204 in the North, but overall market activity remains quiet. Cash market activity is not expected to develop until the second half of the week. Beef cut-outs at midday are higher $2.29 higher (select) and up $0.31 per cwt (choice) with light movement of 76 total loads reported (37 loads of choice cuts, 15 loads of select cuts, no loads of trimmings, 24 loads of ground beef). FEEDER CATTLE: Mixed trade is holding across the feeder cattle futures as the strong pressure which quickly swept through the complex Monday has been hard to overlook during the morning as nearby contracts are trading steady to 50 cents higher, while deferred futures are trading 10 to 40 cents lower at midday. The overall lack of volume in the complex is the main focus in the complex as traders continue to look for additional direction in the grain complex as well as outside commodity markets while live cattle futures are trying to make the best of the quiet market moves. LEAN HOGS: Early support in the lean hog futures market has slipped slightly at midday as front month futures have moved back from moderate gains to a 22 cent loss as traders are focusing on rolling June contracts into late summer contract months. The focus on the renewed buyer support through the market remains focused on increased need to gain access to hogs through the first half of June. Cash prices are higher on the National Direct morning cash hog report. Cash prices are higher on the Iowa Minnesota Direct morning cash hog report. The weighted average price added $0.01 per cwt to $77.61 per cwt with the range from $75.47 to $77.75 per cwt on 2,817 head reported sold. The National Pork Plant Report reported 235 loads selling with prices down $1.19 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.