DTN Midday Livestock Comments 08/30 11:56

DTN Midday Livestock Comments 08/30 11:56 Cattle Markets Hold Triple-Digit Losses Early mixed trade in live cattle markets have quickly eroded due to further pressure in cash cattle trade and soft beef values. Triple-digit losses are seen across the complex as traders look for additional market direction late in the week. By Rick Kment DTN Analyst GENERAL COMMENTS: Trade volume remains light early Tuesday as early support in hog futures is being eroded by the lack of additional market direction and bearish influence from outside markets such as cattle and corn prices. Triple-digit losses are holding in live and feeder cattle futures, limiting the ability to bring buyers back to the table. Corn prices are lower in light trade. September corn futures are 6 cents lower. Stock markets are lower in light trade. The Dow Jones is 53 points lower while Nasdaq is down 11 points. LIVE CATTLE: Even though prices started out mixed in a narrow range through the first half of the morning, there has been little to no long-term support developing in the market. This quickly eroded any support that may have been hanging around the live cattle market, pushing prices to triple-digit losses at midday in most contracts. Cash cattle trade continues to trickle into the market as light trade developed through the north Tuesday morning with prices at $175 dressed basis. This is about $1 to $2 per cwt below Monday's price levels, creating the potential that cash markets may slowly develop through the week with no significant market activity on any given day. Bids of $110 per cwt are seen in the South, which may gain momentum, even though prices are sharply lower than week-ago levels in both the North and South. Beef cut-outs at midday are lower $0.84 lower (select) and down $0.83 per cwt (choice) with light movement of 83 total loads reported (40 loads of choice cuts, 24 loads of select cuts, 5 load of trimmings, 13 loads of ground beef). FEEDER CATTLE: Weakness continues to develop through feeder cattle trade with front month September futures now falling to $2 per cwt lower for the day. The lack of underlying support in both live cattle futures as well as softness in beef market fundamentals has been unable to draw any significant interest back into the market. Typically a strong move lower in corn markets such as seen Tuesday would spark additional feeder cattle support. But even lower feed prices are no help to the cattle complex Tuesday morning. LEAN HOGS: Firm gains have developed through the morning Tuesday with traders focusing on the ability to draw additional volume from the recent market surge seen over the past week. The lack of support in fundamental support as well as light trade volume has limited price movement late morning and moved prices back to a narrowly mixed range. The lack of support in cattle futures is starting to weigh on the entire market. Cash prices are lower on the National Direct morning cash hog report. The weighted average price fell $1.07 per cwt to $58.90 per cwt with the range from $58.50 to $61.00 per cwt on 3,480 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 262 loads selling with prices falling $0.28 per cwt. Lean hog index for 8/26 is at $66.61 down 0.29 with a projected two-day index of $66.34 down 0.27. Rick Kment can be reached at rick.kment@dtn.com (CZ) Copyright 2016 DTN/The Progressive Farmer. All rights reserved.