DTN Midday Livestock Comments 06/08 12:03

DTN Midday Livestock Comments 06/08 12:03 Cattle Futures Move Higher on Strong Beef Support The move higher in the boxed beef market Wednesday helped to drive buyers back into the complex following sharp losses early Wednesday morning. Lean hog futures have continued to move higher on strong demand. By Rick Kment DTN Analyst GENERAL COMMENTS: Firm support is seen through the livestock market at midday as trade activity has remained extremely volatile through most of the morning. Early aggressive losses associated with grain market support has been replaced by buyer interest based on product demand. Corn prices are higher. July corn futures are 6 cents higher. Stock markets are higher in light trade. The Dow Jones is 46 points higher while Nasdaq is up 10 points. LIVE CATTLE: Live cattle futures have posted strong triple-digit gains at midday as firm boxed beef values have helped to offset early market pressure. The aggressive moves higher in the grain market that initially led to quick liquidation across the complex have lost its momentum, with the focus now moving back to potential demand support through early summer. Nearby contracts are holding firm triple-digit gains, based on the expectation that additional firm support may develop later in the week. Cash cattle markets are generally quiet with active trade not likely to be seen until Thursday or Friday. But there are a few bids redeveloping across the complex at $125 in the South and $203 to $206 in the North. Asking prices remain around $130 to $132 in the South and $210 in the North, but the shifts in futures trade could spark some additional interest in the next couple of days. Beef cut-outs at midday are higher $1.12 higher (select) and up $0.88 per cwt (choice) with active movement of 103 total loads reported (54 loads of choice cuts, 20 loads of select cuts, 7 loads of trimmings, 21 loads of ground beef). FEEDER CATTLE: Feeder cattle futures have battled back from sharp early morning losses as traders continue to focus on the lack of support long term direction in the market. The aggressive surge higher in grain markets Wednesday morning led to the triple-digit losses across most feeder cattle futures for the first couple hours of trade. But consistency in buyers stepping into live cattle markets helped to draw nearby contracts higher, with August feeder cattle futures leading the market higher with a 90 cent gain at midday. LEAN HOGS: Strong follow-through support continues to quickly develop across the lean hog futures complex with July and August futures leading the complex higher with 90 cent to $1.30 per cwt gains. The underlying combination of technical and fundamental support developing over the last three weeks across the market has sparked widespread commercial and investment interest across the market, leading increased support in summer contract price levels. Cash prices are lower on the National Direct morning cash hog report. The weighted average price fell $0.92 per cwt to $76.28 per cwt with the range from $75.75 to $78.50 per cwt on 3,106 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 191 loads selling with prices up $0.92 per cwt. Lean hog index for 6/6 is at $78.17, up 0.66 with a projected two-day index of $79.02 up 0.85. Rick Kment can be reached at rick.kment@dtn.com (ES) Copyright 2016 DTN/The Progressive Farmer. All rights reserved.