DTN Midday Livestock Comments 08/10 12:16

DTN Midday Livestock Comments 08/10 12:16 Cattle Futures Pull Back From Early Gains Early buyer support in the feeder cattle futures helped to spark early gains in all cattle trade. But lack of follow-through buyer interest has quickly eroded as the day continued. By Rick Kment DTN Analyst GENERAL COMMENTS: Light pressure is seen in cattle futures as early market support has slowly eroded as the morning has continued. The losses are not expected to become significant, or even change the overall course of market direction based on previous gains through the last several days. Corn prices are higher in light trade. September corn futures are 2 cents lower. Stock markets are lower in light trade. The Dow Jones is 25 points lower while Nasdaq is down 15 points. LIVE CATTLE: Live cattle futures are holding narrow losses at midday after giving back early market gains. The overall lack of direction in the live cattle market is evident, as there is very little directional change in either the cash or beef markets at this point. Trade is expected to remain stuck in a narrow range through the rest of the session. Cash cattle trade is still quiet Wednesday morning, although a few bids are starting to emerge late Wednesday morning. Bids are seen in the South at $116 per cwt, and $186 in the North. This is a couple dollars under last week's trade levels, but where you would expect packers to start out for the week. Beef cut-outs at midday are higher $0.18 higher (select) and up $0.33 per cwt (choice) with active movement of 108 total loads reported (45 loads of choice cuts, 23 loads of select cuts, 12 loads of trimmings, 27 loads of ground beef). FEEDER CATTLE: Feeder cattle futures have backed away from early market support as traders continue to focus on the ability to square positions following the strong market rally seen over the last week. Losses through most of the morning were limited to very light pressure, but more aggressive selling has developed at midday, pushing prices 30 to 50 cents lower across the complex. This is still not enough to create serious concern given the triple-digit gains Tuesday as well as strong market rally over the past few sessions. LEAN HOGS: Mixed trade is still seen in the lean hog futures market, although prices have bounced back from early market lows, and are holding onto narrow single-digit gains in over half of the contracts. The tone of the market remains unsettled, but if traders can show some stability in the market over the next couple of days, there may be the ability to move the market to a sideways market trend, and hopefully build some feet under the complex through the rest of the month of August. Cash prices are lower on the National Direct morning cash hog report. The weighted average price fell $1.42 per cwt to $60.18 per cwt with the range from $55.00 to $61.50 per cwt on 3,745 head reported sold. Cash prices are lower on the Iowa Minnesota Direct morning cash hog report. The weighted average price fell $1.96 per cwt to $60.75 per cwt with the range from $55.00 to $61.47 per cwt on 3,745 head reported sold. The National Pork Plant Report reported 248 loads selling with prices adding $1.40 per cwt. Lean hog index for 8/8 is at $69.42, down 0.51 with a projected two-day index of $68.79 down 0.63. Rick Kment can be reached at rick.kment@dtn.com (CZ) Copyright 2016 DTN/The Progressive Farmer. All rights reserved.