DTN Midday Livestock Comments 08/09 12:09

DTN Midday Livestock Comments 08/09 12:09 Feeder Cattle Leading Cattle Gains Strong double-digit support is seen in most nearby feeder cattle futures Tuesday morning. This is helping to spark light activity in live cattle markets as traders focus on firming beef values as well. By John Harrington DTN Livestock Analyst GENERAL COMMENTS: Firm to strong support is seen through the feeder cattle market, which is helping to spark some light interest in the live cattle complex. Live cattle futures are trading steady to 60 cents higher at midday, but the lack of volume may create late-day volatility. Corn prices are lower in light trade. September corn futures are 1 cent lower. Stock markets are higher in light trade. The Dow Jones is 15 points higher while Nasdaq is up 15 points. LIVE CATTLE: Live cattle futures trade has remained sluggish through the entire Tuesday session. But the support seen in feeder cattle trade as well as buyers looking for additional support from weaker cash corn markets is helping to hold early gains. Cash cattle activity is quiet with no bids developed at this point. Asking prices are starting to slowly develop around $122 in the South and $192 in the North, but it likely going to be toward the end of the week before trade develops. Beef cut-outs at midday are higher $1.38 higher (select) and up $1.02 per cwt (choice) with moderate movement of 75 total loads reported (34 loads of choice cuts, 12 loads of select cuts, nine loads of trimmings, 20 loads of ground beef). FEEDER CATTLE: Strong gains continue to hold through the feeder cattle futures complex Tuesday morning. The overall support in the cattle complex is not surprising given the strength seen over the last week, but there seems to be very little support moving back into the market once prices move near the $150-per-cwt level. This could continue to limit trade activity at this threshold for the next couple of weeks. The lack of direction in the corn complex continues to spark some underlying interest in feeder cattle markets. LEAN HOGS: Lean hog futures continue to remain mixed through the entire morning with no additional direction stepping back into the market. This could allow prices to hover in a narrow range through the rest of the session as traders are focusing on the August contracts expiring at the end of the week. This would put nearby markets under $60 per cwt, unless additional support quickly develops, which at this point seems unlikely given the pressure in fundamentals. Cash prices are lower on the National Direct morning cash hog report. The weighted average price fell $1.86 per cwt to $60.33 per cwt with the range from $56.00 to $62.50 per cwt on 2,798 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 244 loads selling with prices falling $0.47 per cwt. Lean hog index for 8/5 is at $69.93, down 0.55 with a projected two-day index of $69.42 down 0.51. John A. Harrington can be reached at john.harrington@dtn.com (CZ) Copyright 2016 DTN/The Progressive Farmer. All rights reserved.