DTN Midday Livestock Comments 07/12 11:40

DTN Midday Livestock Comments 07/12 11:40 Pressure Redevelops Across Cattle Complex Tuesday Triple-digit losses are seen across the feeder cattle futures complex late Tuesday morning. The bounce higher in grain markets is putting emphasis on production costs once again, limiting buyer interest through the cattle complex. By Rick Kment DTN Analyst GENERAL COMMENTS: Cattle futures are holding moderate to strong losses late Tuesday morning with the focus once again placed on renewed buyer support in grain markets following the USDA report. Hog futures are showing light to moderate support in nearby contracts despite additional softness in cash hog values Tuesday morning. Corn prices are higher. September corn futures are 3 cents lower. Stock markets are higher in light trade. Dow Jones is 132 points higher while Nasdaq is up 42 points. LIVE CATTLE: Light to moderate losses are holding in live cattle futures Tuesday morning following wild price shifts that have driven prices from triple digit losses to narrow gains through the morning. The recent rally in grain prices have caused triple digit pressure to redevelop in feeder cattle trade, and once again is putting additional pressure on nearby and deferred live cattle futures. This is eroding the support seen earlier in the morning surrounding gains in beef values. Cash cattle activity remains generally quiet with a few bids developing in the South at $116 per cwt. A few cattle were sold in Nebraska and Iowa at $186 to $188 per cwt which would be $3 to $4 lower than last week's average. The activity remains extremely light which is not enough to establish a market test. Beef cut-outs at midday are higher $1.44 higher (select) and up $0.38 per cwt (choice) with moderate movement of 94 total loads reported (39 loads of choice cuts, 16 loads of select cuts, 16 loads of trimmings, 22 loads of ground beef). FEEDER CATTLE: Strong market pressure continues to be seen through feeder cattle futures as traders focus on the lack of support through the market and firming grain markets following the USDA supply and demand and production reports released Tuesday morning. Losses across the complex are contained to a narrow range with most contracts trading $1.20 to $1.30 per cwt lower at midday. This lack of support could spark additional weakness through the rest of the session. LEAN HOGS: Light to moderate buyer support has held in nearby contracts as traders continue to focus on the ability to draw traders back into the complex following the aggressive market slide over the last couple of weeks. Deferred contracts continue to trade under moderate pressure, but a higher close in nearby contracts could help spark follow through buying interest through the rest of the week. Cash prices are lower on the National Direct morning cash hog report. The weighted average price fell $1.39 per cwt to $74.54 per cwt with the range from $69.00 to $76.00 per cwt on 3,195 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 194 loads selling with prices adding $1.34 per cwt. Lean hog index for 7/8 is at $82.27, down 0.31 with a projected two-day index of $81.97 down 0.30. Rick Kment can be reached at rick.kment@dtn.com (CZ) Copyright 2016 DTN/The Progressive Farmer. All rights reserved.