DTN Midday Livestock Comments 09/07 11:51

DTN Midday Livestock Comments 09/07 11:51 Livestock Futures Shift Higher Midweek Buyer support quickly develops Wednesday morning as traders move back into the complex following the aggressive selling pressure that swept through the complex Tuesday afternoon. Triple-digit gains are seen in cattle and hog futures at midday Wednesday, creating buyer support as buyers try to offset positions. By Rick Kment DTN Analyst GENERAL COMMENTS: Sharp triple-digit price rallies have quickly developed through the livestock market Wednesday. This has partially offset the aggressive losses that developed Tuesday that sparked the market slide. Corn prices are higher in light trade. September corn futures are 3 cents per bushel higher. Stock markets are lower in light trade. The Dow Jones is 49 points lower while Nasdaq is down 9 points. LIVE CATTLE: Live cattle futures prices are nearly $2.50 per cwt higher at midday, which is well off of session lows, and if markets close near this level will point to the potential for additional market support through the end of the week. But additional market volatility is drawing additional concerns into the complex as underlying fundamental and technical volatility is developing and could bring about wide ranging price swings over the coming weeks. Cash cattle markets remain undeveloped midweek with bids and asking prices still unable to be found at this point. Given the holiday week and aggressive pressure seen Tuesday it is expected that it will be sometime Thursday or Friday before cash markets develop. Given the volatility in the market most in the market seem too nervous to even put their foot on base given the uncertainty of the market and where the next market moves. Beef cut-outs at midday are mixed $2.19 lower (select) and up $1.60 per cwt (choice) with active movement of 118 total loads reported (64 loads of choice cuts, 31 loads of select cuts, no loads of trimmings, 23 loads of ground beef). FEEDER CATTLE: Buyers have quickly moved back into the feeder cattle futures complex, following the aggressive early-week tumble seen Tuesday. Even though markets have seen gains of $2 per cwt midweek, the complex for the week remains weak on a weekly chart, which may limit additional support, but could help to draw additional longer-term support as buyers could rally back into the complex through the rest of the session. The volatility in the market may continue through the week, but the uncertainty in the fundamental markets is still creating concerns in the overall markets as traders focus on the inability to draw support to beef values and draw cash cattle prices or bring feeder prices higher during the end of the summer months. LEAN HOGS: Firm gains have continued to hold through the morning although trade has remained light during the morning. October lean hog futures have remained light Wednesday morning with $1.77 per Wednesday morning as gains are holding at $60.70 per cwt Wednesday morning following a rally midweek. Additional follow-through gains are expected to develop through the complex later in the week. Cash prices are unchanged on the National Direct morning cash hog report. The weighted average price is $57.91 per cwt with the range from $52.00 to $60.00 per cwt on 5,845 head reported sold. Cash prices are lower on the Iowa Minnesota Direct morning cash hog report. The weighted average price fell $0.25 per cwt to $58.86 per cwt with the range from $52.00 to $59.50 per cwt on 3,100 head reported sold. The National Pork Plant Report reported 298 loads selling with prices gaining $0.10 per cwt. Lean hog index for 9/2 is at $64.89 down 0.37 with a projected two-day index of $64.51 down 0.38. Rick Kment can be reached at rick.kment@dtn.com (ES) Copyright 2016 DTN/The Progressive Farmer. All rights reserved.