DTN Midday Livestock Comments 06/28 12:00

DTN Midday Livestock Comments 06/28 12:00 Live Cattle Futures Continue Higher Tuesday Follow-through support is seen through cattle trade Tuesday morning with nearby live cattle futures holding gains near $1 per cwt through most of the morning. The firm buyer activity has very little to do with changing fundamentals, but a technical shift is starting to develop. By Rick Kment DTN Analyst GENERAL COMMENTS: Cattle futures remain firmly higher Tuesday as additional strong buyer interest stepped into the market Tuesday. Nearby live cattle futures have rallied as much as $2.25 per cwt over the last two trading sessions, helping to bring commercial and investors back into the market. Corn prices are higher. July corn futures are 2 cents higher. Stock markets are higher in light trade. The Dow Jones is 153 points higher while Nasdaq is up 72 points. LIVE CATTLE: Strong gains have developed Tuesday morning across the live cattle futures. Nearby contracts have held $1 per cwt gains through most of the morning, although the lack of boxed beef market support has slightly eroded gains at midday. This could keep prices from moving significantly through the end of the session, as traders are concerned with additional market volatility through the rest of the week. Cash cattle markets are still quiet Tuesday with bids and asking prices still not fully defined. Asking prices are likely to start near $118 to $120 per cwt in the South and $190 and higher in the North. Active trade may easily hold off until the second half of the week, although both sides are likely to try to get business done as quickly as possible as no one wants to stick around late Friday ahead of the long holiday weekend. Beef cut-outs at midday are lower $0.06 lower (select) and down $2.46 per cwt (choice) with light movement of 86 total loads reported (42 loads of choice cuts, 18 loads of select cuts, 13 loads of trimmings, 14 loads of ground beef). FEEDER CATTLE: Driven by strong early gains across live cattle futures, feeder cattle futures are replacing early mixed price moves with moderate gains in nearby contracts. The pullback from morning highs in the corn complex is also drawing buyers back to summer feeder cattle contracts, although the tone of the market remains sluggish as most traders are still treading cautiously following recent market pressure. LEAN HOGS: Lean hog futures are holding narrowly mixed price levels Tuesday morning despite the overall lack of urgency in the market and very quiet trade. Front month futures continue to hold light losses of 5 to 15 cents per cwt through midday, while the rest of the complex is limited to narrow gains. But the break from strong market pressure seen over the last week is creating a sense of hope for the market. Cash prices are lower on the National Direct morning cash hog report. The weighted average price fell $1.37 per cwt to $79.24 per cwt with the range from $72.00 to $80.50 per cwt on 3,156 head reported sold. Cash prices are lower on the Iowa Minnesota Direct morning cash hog report. The weighted average price fell $1.94 per cwt to $79.32 per cwt with the range from $75.00 to $80.50 per cwt on 466 head reported sold. The National Pork Plant Report reported 260 loads selling with prices adding $1.14 per cwt. Lean hog index for 6/24 is at $84.61, up 0.20 with a projected two-day index of $84.86 up 0.25. Rick Kment can be reached at rick.kment@dtn.com (CZ) Copyright 2016 DTN/The Progressive Farmer. All rights reserved.