DTN Midday Livestock Comments 07/29 12:03

DTN Midday Livestock Comments 07/29 12:03 Cattle Futures Weak at Midday in Sluggish Trade Lack of market direction is allowing livestock contracts to hold narrow to moderate price shifts at midday. Traders are focusing on end-of-the-week and month position squaring. Sluggish trade is expected to be seen through the end of the session. By Rick Kment DTN Analyst GENERAL COMMENTS: Livestock futures are thinly traded Friday morning with prices moving back and forth in light to moderate ranges during the morning. This type of market activity is likely to be seen through most of the complex as traders focus on the development of cash markets late in the day. Most end-of-month positioning has already been done in both cattle and hog futures, allowing prices to wander aimlessly through the rest of the session. Corn prices are higher in light trade. September corn futures are 0.5 cent higher. Stock markets are mixed in light trade. The Dow Jones is 28 points lower while Nasdaq is up 5 points. LIVE CATTLE: Live cattle futures have moved lower through the morning with early market support eroding based on lack of trader interest and no additional market direction developing in either the cash or beef market. There could be some additional market shifts seen through the end of the session as the lack of volume could spark volatility. Cash cattle trade remains silent, although active bids are redeveloping through the complex. Bids in the South are seen at $114 through the morning while bids of $183 to $185 per cwt are once again seen in the North on live basis cattle. Asking prices remain at $118 to $120 in the South and $190 and higher in the North. Beef cut-outs at midday are mixed, $0.15 higher (select) and down $0.85 per cwt (choice) with light movement of 73 total loads reported (41 loads of choice cuts, 14 loads of select cuts, 4 loads of trimmings, 15 loads of ground beef). FEEDER CATTLE: Feeder cattle futures are mixed in narrow ranges Friday morning as initial buyer support steps away from the complex. Front-month futures continue to hold narrow gains of 35 cents per cwt, although very little widespread market activity is likely to develop through the session with traders having most of the needed work done before the end of the month. Trade may continue to develop within the current range, but very little direction is likely to be seen. LEAN HOGS: Lean hog futures continue to hold light to moderate gains at midday as end-of-the-week positioning is the main focus through the complex. August futures are holding 20-cent gains while the remainder of nearby contracts are holding 3- to 60cent gains, although trade remains extremely light and overall volume is sluggish. It is uncertain just how much of this stability will spill over to Monday's market when traders return in force with a new month on the calendar while fundamentals remain soft. Cash prices are lower on the National Direct morning cash hog report. The weighted average price fell $1.43 per cwt to $65.19 per cwt with the range from $62.00 to $66.50 per cwt on 1,939 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 120 loads selling with prices falling $1.32 per cwt. Lean hog index for 7/27 is at $74.47, down 0.42 with a projected two-day index of $73.73 down 0.74. Rick Kment can be reached at rick.kment@dtn.com (CZ) Copyright 2016 DTN/The Progressive Farmer. All rights reserved.