DTN Midday Livestock Comments 08/15 12:13

DTN Midday Livestock Comments 08/15 12:13 Gains Quickly Develop Across Hog Futures Strong triple-digit gains have been seen in all nearby lean hog futures as traders now focus on October and December oversold market situations now that August futures have expired. By Rick Kment DTN Analyst GENERAL COMMENTS: Mixed cattle trade is creating only limited market activity through the morning, while the main focus has moved to nearby lean hog futures which are showing aggressive price support in nearby contracts as October futures take their place as front month contracts. Corn prices are higher in light trade. September corn futures are 3 cents higher. Stock markets are higher in light trade. The Dow Jones is 76 points higher while Nasdaq is up 35 points. LIVE CATTLE: Narrowly mixed trade is seen in the live cattle complex where there continues to be increased market interest developing through the rest of the complex. August and October futures are holding narrow losses, while the firmness in beef values is helping to spark some long term support in deferred contract months. Cash cattle markets remain quiet with show lists generally mixed early in the week. Smaller show lists and overall lack of activity early in the week. Bids are not expected until midweek. Beef cut-outs at midday are higher $0.66 higher (select) and up $1.01 per cwt (choice) with moderate light of 63 total loads reported (30 loads of choice cuts, 11 loads of select cuts, 8 loads of trimmings, 15 loads of ground beef). FEEDER CATTLE: Narrow trading ranges continue to be seen through the feeder cattle futures complex with nearby contracts holding light support following the strong push higher in beef values and ability for live cattle markets to remain stable. But the gains in the grain market through the morning is limiting underlying support and still holding losses in deferred contracts as traders look for higher production costs coming from the feed price increases. LEAN HOGS: Sharp triple-digit gains continue to hold through lean hog futures contracts with October contracts surging nearly $2 per cwt higher the entire complex. October futures are holding near $62 per cwt as traders continue to focus on the fact that August futures have expired. The combination of commercial and investment buying stepping into the market as October contracts gained aggressive interest. Cash prices are lower on the National Direct morning cash hog report. The weighted average price fell $1.47 per cwt to $61.30 per cwt with the range from $58.00 to $63.50 per cwt on 3,040 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 160 loads selling with prices adding $3.27 per cwt. Lean hog index for 8/10 is at $68.20, down 0.59 with a projected two-day index of $67.57 down 0.63. Rick Kment can be reached at rick.kment@dtn.com (CZ) Copyright 2016 DTN/The Progressive Farmer. All rights reserved.