DTN Midday Livestock Comments 08/19 12:05

DTN Midday Livestock Comments 08/19 12:05 Livestock Futures Back Away From Early Gains Prices through livestock futures have bounced higher and lower through the morning due to extremely light trader activity and the lack of longer term market direction developing late in the week. This is expected to keep markets mixed through the end of the session, although price ranges may widen in late day activity. By Rick Kment DTN Analyst GENERAL COMMENTS: Mixed trade is seen across the livestock market as traders interest has been very light through the morning. The focus on squaring positions through the end of the week and potential shifts surrounding the afternoon release of the cattle on feed report could spark additional market shifts just before closing bell. Corn prices are higher in light trade. September corn futures are 2 cents higher. Stock markets are lower in light trade. The Dow Jones is 62 points lower while Nasdaq is down 12 points. LIVE CATTLE: Live cattle futures are currently mixed in a single digit price range as traders remain content with current market direction at this point and heading into the weekend. The upcoming cattle on feed report may help to draw additional late day attention to the market and could cause sunset trade shifts, but as of now, there is very little significant direction expected to be developing in the live cattle complex. Cash cattle markets appear to be done for the week with not even a bid developing through the morning. Following light to moderate volume of lower trade Thursday afternoon, it is expected that some additional clean up activity may develop late in the day. But this could be after the cattle on feed report. Unless a major shift is seen in the cattle on feed report, price ranges are likely to be set in stone. Beef cut-outs at midday are lower $0.13 higher (select) and down $0.71 per cwt (choice) with light movement of 59 total loads reported (25 loads of choice cuts, 13 loads of select cuts, 12 loads of trimmings, 9 loads of ground beef). FEEDER CATTLE: Moderate buyer support has once again stepped into the feeder cattle market as traders focus on the potential that a shift in market direction may be seen surrounding placement levels in the upcoming cattle on feed report. The report will be released after markets close, which is giving traders an opportunity to adjust positions in front of the report, with market shifts holding until early Monday. Front month August futures are holding a 85 cent per cwt gain, as traders remain focused on the longer term direction of placements through the fall months. LEAN HOGS: Renewed buyer support is slowly stepping into the lean hog futures complex late Friday morning as prices have adjusted higher and lower through the first half of Friday's session. At this point, very little additional direction is developing as traders appear to be squaring positions in front of the weekend. October through April contracts continue to be driven by short covering following the choppiness of the market through the week, but markets have still not broken away from the yo-yo style moves seen over the last couple of weeks. Cash prices are lower on the National Direct morning cash hog report. The weighted average price fell $0.27 per cwt to $61.87 per cwt with the range from $55.00 to $63.50 per cwt on 2,592 head reported sold. Cash prices are lower on the Iowa Minnesota Direct morning cash hog report. The weighted average price fell $0.43 per cwt to $63.11 per cwt with the range from $55 to $63.50 per cwt on 917 head reported sold. The National Pork Plant Report reported 117 loads selling with prices gaining $1.27 per cwt. Lean hog index for 8/17 is at $67.32, up 0.15 with a projected two-day index of $67.22 down 0.10. Rick Kment can be reached at rick.kment@dtn.com (CZ) Copyright 2016 DTN/The Progressive Farmer. All rights reserved.