DTN Midday Livestock Comments 07/13 11:44

DTN Midday Livestock Comments 07/13 11:44 Cattle Futures Surge Higher Wednesday Strong triple-digit gains have quickly developed through nearby live cattle futures. This is helping to spark additional follow-through support into the market and bring about even more support over the next couple of hours before closing bell. By Rick Kment DTN Analyst GENERAL COMMENTS: Sharp gains have quickly developed through the live cattle futures complex. This is helping to draw additional support into all livestock markets. Corn prices are higher. September corn futures are 11 cents lower. Stock markets are lower in light trade. The Dow Jones is 9 points lower while Nasdaq is down 12 points. LIVE CATTLE: Strong midweek gains have quickly developed through the live cattle futures complex. Additional support may continue to be seen, although gains of nearly $2 per cwt in front-month contracts is helping to solidify the buyer support that has already developed. Cash cattle markets are untraded Wednesday morning with bids becoming more evident through the trading day. Bids are seen $186 to $187 dressed basis in the North and $116 live basis in both the north and the South. The bounce higher in futures trade could firm both bids and asking prices through the next couple of days. Asking prices are currently $120 to $122 per cwt live basis in the South and $190 and higher dressed basis in the North. Beef cut-outs at midday are mixed $0.59 higher (select) and down $0.31 per cwt (choice) with moderate movement of 82 total loads reported (27 loads of choice cuts, 17 loads of select cuts, 5 loads of trimmings, 32 loads of ground beef). FEEDER CATTLE: Feeder cattle futures started sharply lower with triple digit losses through the first couple hours of trade Wednesday. The firm support seen developing across live cattle futures through the morning has slowly but steadily eroded initial pressure, and pushed nearby contracts higher at midday. Nearby futures are now holding gains of 20 to 60 cents per cwt as spillover support from the live cattle complex moves through the feeder cattle complex. LEAN HOGS: Moderate gains are holding through nearby lean hog futures contracts as traders are taking advantage of the flurry of support redeveloping in nearby lean hog futures following Tuesday's attempt to stabilize the market. Gains are seen in nearby contracts from 20 to 85 cents per cwt as traders are equally interested in nearby summer contracts as well as winter futures. Deferred contracts are still mixed, but the lack of selling in the market is drawing strong support through the complex at midday. Cash prices are lower on the National Direct morning cash hog report. The weighted average price fell $0.76 per cwt to $74.81 per cwt with the range from $68.00 to $76.00 per cwt on 4,170 head reported sold. Cash prices are lower on the Iowa Minnesota Direct morning cash hog report. The weighted average price fell $0.49 per cwt to $75.56 per cwt with the range from $68.00 to $76.00 per cwt on 1,425 head reported sold. The National Pork Plant Report reported 294 loads selling with prices adding $1.09 per cwt. Lean hog index for 7/11 is at $81.97, down 0.30 with a projected two-day index of $81.37 down 0.60. Rick Kment can be reached at rick.kment@dtn.com (CZ) Copyright 2016 DTN/The Progressive Farmer. All rights reserved.