DTN Midday Livestock Comments 09/06 12:07

DTN Midday Livestock Comments 09/06 12:07 Live Cattle Futures are Narrowly Mixed at Midday Mixed live cattle futures at midday have limited impact in feeder cattle futures. This is keeping traders focusing on support level in both feeder cattle and lean hog markets which could create additional pressure in both markets through the near future if additional selling pressure develops through the rest of the week. By Rick Kment DTN Analyst GENERAL COMMENTS: Live cattle futures are moving in a very narrow trading range early Tuesday morning as traders are caught by the lack of support in feeder cattle markets and the ability to draw light support in beef values early in the week. Hog prices continue to move sharply lower Tuesday causing even more concern through the complex. Corn prices are lower in light trade. September corn futures are 1 cent per bushel higher. Stock markets are higher in light trade. The Dow Jones is 12 points higher while Nasdaq is up 21 points. LIVE CATTLE: Live cattle futures remain mixed in narrow trading ranges with limited moves seen on the complex. The overall lack of direction in the complex is likely to keep the market sluggish through the entire complex as traders look for firm support from beef support through the rest of the week. Cash cattle activity remains light as bids and asking prices remain undeveloped in early week activity. Show lists remain larger in most areas as packer interest is steadily improved for the week. Beef cut-outs at midday are higher $0.31 higher (select) and up $28 per cwt (choice) with light movement of 65 total loads reported (37 loads of choice cuts, 12 loads of select cuts, 4 loads of trimmings, 12 loads of ground beef). FEEDER CATTLE: Feeder cattle futures have posted additional losses with front-month September futures posting $1.70 per cwt losses through the morning, moving to $1.33 per cwt as further weakness continues to erode through the complex. The additional softness is seen through the market as traders are limited even though limited softness is seen in live cattle markets. And mixed trade is seen in corn prices through the morning. Trade is expected to remain light across the rest of the feeder cattle complex which may expand the losses before closing bell. LEAN HOGS: Lean hog futures are holding triple-digit losses in nearby contracts Tuesday morning as aggressive pressure continues to develop through the October futures market with any hope of a rally above $60 per cwt holding being dashed. Initial support of $58.70 is attempting to hold at this point with traders looking for any sense of stability as traders return from the long holiday weekend and a sense of stability and try to find renewed buyer support as traders resume work through the month of September. Some stability is seen through summer 2017 contracts, but this may be a little too late for additional buyer activity in nearby contract months. Cash prices are lower on the National Direct morning cash hog report. The weighted average price fell $1.05 per cwt to $57.14 per cwt with the range from $52.00 to $60.00 per cwt on 3,393 head reported sold. Cash prices are lower on the Iowa Minnesota Direct morning cash hog report. The weighted average price fell $1.05 per cwt to $58.97 per cwt with the range from $52.00 to $60.00 per cwt on 660 head reported sold. The National Pork Plant Report reported 135 loads selling with prices gaining $2.00 per cwt. Lean hog index for 9/1 is at $65.26 down 0.50 with a projected two-day index of $61.89 down 0.37. Rick Kment can be reached at rick.kment@dtn.com (ES) Copyright 2016 DTN/The Progressive Farmer. All rights reserved.