DTN Midday Livestock Comments 06/30 12:00

DTN Midday Livestock Comments 06/30 12:00 Cattle Futures Hold Triple-Digit Gains Buyer support redeveloped across the cattle complex late Thursday morning as triple digit price gains were seen following the USDA stocks and acreage report. Trade volume remains sluggish on the last trading session of June, but cattle market support is expected to hold. By Rick Kment DTN Analyst GENERAL COMMENTS: Renewed buyer support quickly stepped into the cattle complex with traders focusing on the renewed pressure in the corn market following the USDA report. The focus on larger planted acres and larger than expected corn stocks created a quick market retraction in all corn futures. Cattle futures took advantage of the eroding corn market, although volume levels across the livestock market remain light. Corn prices are lower. July corn futures are 9 cents lower. Stock markets are higher in light trade. The Dow Jones is 51 points higher while Nasdaq is up 42 points. LIVE CATTLE: The reaction by feeder cattle futures gaining additional market support after corn prices have posted sharp losses midday Thursday is sparking firm support through the live cattle market. June live cattle futures are holding a $1.10 per cwt, and if markets would close at this level would be able to maintain a $120 per cwt. This would be the highest close since the second week of June. Cash cattle trade is starting to slowly develop in the North with price at $195 per cwt. This is $7 per cwt higher that last week's average. Trade is still undeveloped in the South, although bids are seen at $116 per cwt, which is fully steady with last week. Asking prices are seen near $120 per cwt in the South and $200 in the North. Beef cut-outs at midday are higher $0.53 higher (select) and up $0.75 per cwt (choice) with light movement of 59 total loads reported (34 loads of choice cuts, 19 loads of select cuts, no loads of trimmings, 6 loads of ground beef). FEEDER CATTLE: Even though trade volume remains light across the feeder cattle complex, strong triple-digit gains have developed following the release of the USDA crop report. Corn stocks came in more than expected while planted acreage for corn increased. This pushed corn prices sharply lower following the report release, but sparked additional buyer support in the cattle complex. Nearby futures are holding gains just over $1 per cwt while deferred futures remain moderately higher. The lack of active trade in the market could limit further market moves through the rest of the week. LEAN HOGS: Even though trade remains sluggish at the end of the month, buyer support is nowhere to be found. This is keeping most traders on the sidelines as prices are holding narrow losses at midday. Front month July futures are leading the market lower with a 32 cent loss, while the rest of the nearby contracts are holding losses between 10 and 20 cents per cwt. The lack of fundamental support through the last week has created a lethargic market in all areas. It is expected that markets will remain quiet until the middle od next week when traders return from the long holiday weekend. Cash prices are lower on the National Direct morning cash hog report. The weighted average price fell $1.36 per cwt to $78.15 per cwt with the range from $71.50 to $80.00 per cwt on 2,150 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 158 loads selling with prices falling $1.11 per cwt. Lean hog index for 6/28 is at $85.03, up 0.17 with a projected two-day index of $84.91 down 0.12. Rick Kment can be reached at rick.kment@dtn.com (CZ) Copyright 2016 DTN/The Progressive Farmer. All rights reserved.