DTN Midday Livestock Comments 06/23 12:06

DTN Midday Livestock Comments 06/23 12:06 Sharp Gains Flood into Cattle Complex Aggressive market support has quickly developed through both live cattle and feeder cattle markets Thursday. The renewed pressure in corn markets has brought back increased focus on rebounding cattle prices. Lean hog futures remain sharply lower as follow-through liquidation is developing through the morning. By Rick Kment DTN Analyst GENERAL COMMENTS: Cattle prices have moved aggressively higher during the Thursday session with triple-digit gains holding at midday. The support in the cattle complex has eroded even more support from the lean hog futures market which is sharply lower adding to recent market weakness which has developed through the week. Corn prices are lower. July corn futures are 6 cents lower. Stock markets are higher in light trade. The Dow Jones is 156 points higher while Nasdaq is up 54 points. LIVE CATTLE: Live cattle futures are moving sharply higher with aggressive triple-digit gains seen in all nearby contracts. August futures are leading the complex higher with a $2.15 per cwt rally based primarily on the support in the feeder cattle market and further pressure in corn markets. Cash cattle activity remains light through the morning with bids in the North seen at $185 to $186 per cwt. This follows light to moderate trade midweek with prices at $116 in the South and $184 to $186 per cwt. The overall lack of support in the cash complex is gaining very little momentum from futures market support. Beef cut-outs at midday are mixed $0.60 higher (select) and down $0.62 per cwt (choice) with light movement of 84 total loads reported (47 loads of choice cuts, 20 loads of select cuts, 7 loads of trimmings, 9 loads of ground beef). FEEDER CATTLE: Strong gains have quickly redeveloped across the feeder cattle market with August futures leading the complex higher with a $2.05 per cwt rally. The support through the market remains firm, but after prices hit contract lows earlier in the week, there is a lot of upward potential before resistance is seen. All contracts are holding triple-digit gains. LEAN HOGS: Strong follow-through pressure is developing through the lean hog futures complex with triple digit losses seen in August through December contract months. The underlying lack of buyer support willing to step into the market during the downward price slide is bringing about even more liquidation and quickly eroding support over the last three weeks. This pressure may continue to develop and push prices even lower through the end of the week. Cash prices are lower on the National Direct morning cash hog report. The weighted average price fell $1.04 per cwt to $80.14 per cwt with the range from $76.00 to $82.75 per cwt on 3,049 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 154 loads selling with prices down $0.96 per cwt. Lean hog index for 6/21 is at $83.51, up 0.38 with a projected two-day index of $84.02 up 0.51. Rick Kment can be reached at rick.kment@dtn.com (CZ) Copyright 2016 DTN/The Progressive Farmer. All rights reserved.