DTN Midday Livestock Comments 06/22 11:55

DTN Midday Livestock Comments 06/22 11:55 Firm Gains Developing in Cattle Futures Support continues to develop in both live and feeder futures. Sharp, triple-digit losses have flooded into the lean hog complex on concerns of additional pressure developing later in the month. By Rick Kment DTN Analyst GENERAL COMMENTS: Firm gains are holding in live and feeder cattle futures. Tuesday's aggressive triple-digit gains are causing spillover buyer support through the entire complex. Lean hog futures are posting sharp losses on quiet trade. Corn prices are higher. July corn futures are 3 cents higher. Stock markets are higher in light trade. The Dow Jones is 22 points higher while Nasdaq is up 2 points. LIVE CATTLE: Strong buyer support redeveloped in live cattle futures Wednesday morning despite early pressure when markets opened. This follow-through activity could spark additional interest late in the week. Cash cattle markets are starting to develop with bids in the South and North through the morning. The lack of support in cash markets on the few cattle traded Tuesday may limit upside market potential through the rest of the week. Beef cut-outs at midday are higher $0.38 higher (select) and up $2.27 per cwt (choice) with light movement of 81 total loads reported (42 loads of choice cuts, 17 loads of select cuts, no loads of trimmings, 22 loads of ground beef). FEEDER CATTLE: Strong gains have redeveloped across feeder cattle contracts as commercial and noncommercial interests have stepped back into the market. Sharp gains Tuesday rekindled market interest. However, corn futures have been steady to moderately higher through the morning. The focus on potential wide shifts in feed prices over the coming weeks could bring additional support to the feeder cattle market. LEAN HOGS: Lean hog futures posted sharp losses Wednesday morning as buyer support quickly evaporated due to the lack of follow-through buying. Summer contracts are posting losses over $1 per cwt at midday. This is still not enough to erode previous technical support, but could cause some additional concerns through the next couple of weeks. Cash prices are lower on the National Direct morning cash hog report. The weighted average price fell $1.30 per cwt to $79.84 with the range from $74.00 to $82.00 on 3,125 head reported sold. Cash prices are lower on the Iowa Minnesota Direct morning cash hog report. The weighted average price fell $1.44 per cwt to $80.62 per cwt with the range from $74.00 to $82.00 per cwt on 410 head reported sold. The National Pork Plant Report reported 249 loads selling with prices down $0.07 per cwt. Lean hog index for 6/17 is at $82.92, up 0.30 with a projected two-day index of $83.13 up 0.21. Rick Kment can be reached at rick.kment@dtn.com (CZ) Copyright 2016 DTN/The Progressive Farmer. All rights reserved.