DTN Midday Livestock Comments 09/14 11:58

DTN Midday Livestock Comments 09/14 11:58 Cattle Futures Push Higher Nearby live cattle futures crawl higher as traders look for additional buyer support and beef values improve. The increased support coming from the cattle market has been offset by further weakness in the hog market as prices continue to erode. By Rick Kment DTN Analyst GENERAL COMMENTS: Strong buyer support is developing in front month live cattle futures as October live cattle futures are holding an 80 cent per cwt rally at midday. The support in nearby contracts is limiting losses in feeder cattle trade, but unable to bring strong support back to the table. Hog futures remain under significant pressure with triple-digit losses redeveloping as December futures have slipped below $50 per cwt. Corn prices are mixed in light trade. December corn futures are 1 cent per bushel higher. Stock markets are higher in light trade. The Dow Jones is 38 points higher while Nasdaq is up 34 points. LIVE CATTLE: Strong buyer support has quickly moved back into the live cattle futures complex with front-month October futures 80 cents higher, as traders moving above $105 per cwt, helping to establish renewed support in all nearby contracts. The ability to bring additional support to beef values as well as the potential for additional long-term commercial market support. Cash cattle trade is still undeveloped, although there are a few bids starting to be seen in the South at $104. These bids are $1 lower than last week's trade levels, which indicates that packers may start to show some interest and could be convinced of steady to higher money by the end of the money if follow through support is seen in beef values. Bids are still undeveloped in the North, and may remain that way through much of the day. Asking prices remain at $110 in the South. Beef cut-outs at midday are higher $0.44 higher (select) and up $0.12 per cwt (choice) with active movement of 118 total loads reported (58 loads of choice cuts, 19 loads of select cuts, no loads of trimmings, 40 loads of ground beef). FEEDER CATTLE: Feeder cattle futures are unable to find much support midweek despite the buyer support slowly developing through the live cattle market. October live cattle futures have regained market support through the complex as trades are regrouping in nearby contracts and trying to develop support on a technical and fundamental level through midweek. Although feeder cattle futures remain lightly traded and have pulled well off of session lows, the inability to draw buyers back into the complex is limiting additional support at this time. LEAN HOGS: Lean hog futures have reached triple-digit losses at midday, with pressure consistently developing through the morning. Triple-digit losses in cash markets did little to offset the firmness in pork values as futures prices continue to move lower with October futures reaching $1.40 losses in moderate pressure. December contracts have moved below $50 per cwt which has not only created contract lows, but is creating a significant barrier in which market bearishness continues to develop. A close below $50 per cwt will continue to cause widespread liquidation through the rest of the week. Cash prices are lower on the National Direct morning cash hog report. The weighted average price fell $1.72 per cwt to $55.11 per cwt with the range from $52.00 to $56.25 on 4,673 head reported sold. Cash prices are lower on the Iowa Minnesota Direct morning cash hog report. The weighted average price fell $2.48 per cwt to $55.07 per cwt with the range from $52.00 to $56.25 on 2,058 head reported sold. The National Pork Plant Report reported 244 loads selling with prices gained $0.34 per cwt. Lean hog index for 9/12 is at $63.95 down 0.12 with a projected two-day index of $63.83 down 0.12. Rick Kment can be reached at rick.kment@dtn.com (ES) Copyright 2016 DTN/The Progressive Farmer. All rights reserved.