DTN Midday Livestock Comments 08/31 11:41

DTN Midday Livestock Comments 08/31 11:41 Moderate Selling Redevelops in Cattle Trade Strong gains Tuesday across the cattle complex has had limited impact midweek. Cattle markets remain under intense pressure once again as feeder cattle futures are holding losses of $1 to $2 per cwt. By Rick Kment DTN Analyst GENERAL COMMENTS: Cattle futures have turned lower once again midweek as traders look at extremely light trade activity at the end of the month, and focus on still weak market fundamentals heading into the Labor Day holiday weekend. Hog futures are hovering in a narrow range on either side of steady with the focus on potential longer-term market stability, and light pre-holiday trade volume. Corn prices are steady in light trade. September corn futures are unchanged. Stock markets are lower in light trade. The Dow Jones is 112 points lower while Nasdaq is down 28 points. LIVE CATTLE: August live cattle continues to hold strong gains of $1.40 per cwt, although this move higher will affect the closing settlement price of August contracts, but has very little importance to the overall volume seen in the market. August futures are getting ready to expire, which is causing some aggressive market shifts as traders remain stuck in the market. The rest of the complex has pushed lower through the morning, unable to build on strong gains seen Tuesday. Prices are currently 30 to 90 cents per cwt lower in most nearby contracts, which indicated overall light trade activity, although the majority of Tuesday's gains may be carried into September. Cash cattle markets are quiet Wednesday morning following additional trade that developed in all areas Tuesday. The focus in the complex continues to be based on early trade likely setting the tone for the week, although at this point it is uncertain just how much trade will need to be done before the long holiday weekend. Asking prices are at $113 to $115 in the South and $178 to $180 in the North, although midweek activity is more typical to what is seen on Friday than a Wednesday. Beef cut-outs at midday are lower $0.68 lower (select) and down $0.43 per cwt (choice) with active movement of 105 total loads reported (50 loads of choice cuts, 24 loads of select cuts, 6 load of trimmings, 25 loads of ground beef). FEEDER CATTLE: The strong buyer surge which quickly developed late Tuesday has once again faltered to gain follow-through interest. Prices are trading $1.17 to $1.77 per cwt lower through the morning as traders are quickly backing away from previous gains. Trade volume remains light through most of the complex, which has limited additional interest in the market, but may be keeping prices from dipping even lower during morning trade. LEAN HOGS: Trade through the lean hog futures complex has remained directionless through most of the morning. Initial follow-through buyer support quickly stepped into the market when trade opened, but the lack of follow-through buyer interest stepping into the complex has allowed prices to hold narrowly mixed price shifts on either side of unchanged. This could allow increased stability at the end of the month, which may spark additional interest during early September. Cash prices are lower on the National Direct morning cash hog report. The weighted average price fell $1.36 per cwt to $58.47 per cwt with the range from $53.00 to $61.00 per cwt on 2,795 head reported sold. Cash prices are lower on the Iowa Minnesota Direct morning cash hog report. The weighted average price fell $2.71 per cwt to $57.66 per cwt with the range from $53.00 to $61.00 per cwt on 95 head reported sold. The National Pork Plant Report reported 164 loads selling with prices falling $0.07 per cwt. Lean hog index for 8/29 is at $66.34, down 0.27 with a projected two-day index of $66.03 down 0.31. Rick Kment can be reached at rick.kment@dtn.com (ES) Copyright 2016 DTN/The Progressive Farmer. All rights reserved.