DTN Midday Livestock Comments 08/29 12:14

DTN Midday Livestock Comments 08/29 12:14 Cattle Futures Continue Lower Monday Strong losses have continued to develop across live cattle and feeder cattle markets as traders search for long-term market support, but unable to find stability as August draws to a close. By Rick Kment DTN Analyst GENERAL COMMENTS: Sharp losses continue to be seen through live cattle futuers following the lack of support in either fundamental or technical support over the last week. Further pressure in boxed beef values in the morning report is adding even more uncertainty to the already soft market structure. Corn prices are lower in light trade. September corn futures are 4 cents lower. Stock markets are higher in light trade. The Dow Jones is 119 points higher while Nasdaq is up 25 points. LIVE CATTLE: Strong losses continue to develop through most live cattle futures markets. There may be additional trade volume developing through the end of the session, but the lack of underlying fundamental support and concern that markets will continue to take out short and long-term support levels is causing many traders to remain bearish through the end of the month. Cash cattle markets remain quiet with bids and asking prices undeveloped at this point. The overall lack of support over the last couple of weeks continues to point to market uncertainty. Active trade is not expected to be seen until midweek or later. Beef cut-outs at midday are lower $0.60 lower (select) and down $0.57 per cwt (choice) with light movement of 63 total loads reported (31 loads of choice cuts, 18 loads of select cuts, 1 load of trimmings, 13 loads of ground beef). FEEDER CATTLE: Triple-digit losses have once again redeveloped Monday morning as traders continue to search desperately for price support through the end of August. The price spread between feeder cattle and live cattle futures continues to slowly narrow, which may help to improve margin opportunities through the end of the year. But the lack of support in live cattle futures and expected strong placement numbers through the end of the year could keep the cattle market over the next couple of weeks. LEAN HOGS: Lean hog futures continue to hold light to moderate gains midday Monday as follow through buyer support continues to trickle into the market following the aggressive triple-digit gains. Even though strong buyer support has not redeveloped following the weekend, the ability to keep buyers moving slowly back into the complex could spark renewed long-term support in what expect to be a very oversold market complex. Cash prices are lower on the National Direct morning cash hog report. The weighted average price fell $1.25 per cwt to $59.43 per cwt with the range from $55.00 to $61.00 per cwt on 3,478 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 138 loads selling with prices adding $0.85 per cwt. Lean hog index for 8/25 is at $66.90 down 0.14 with a projected two-day index of $66.61 down 0.29. Rick Kment can be reached at rick.kment@dtn.com (CZ) Copyright 2016 DTN/The Progressive Farmer. All rights reserved.