DTN Midday Livestock Comments 09/15 11:54

DTN Midday Livestock Comments 09/15 11:54 Cattle Futures Push Higher Thursday Sharp gains continue to develop Thursday as traders are looking for additional support despite cash cattle markets remaining untraded. October live cattle futures have moved to $107 per cwt after rebounding nearly $7 per over the last two weeks on commercial support while hog market continue to show incredible market weakness. By Rick Kment DTN Analyst GENERAL COMMENTS: Firm buyer activity has redeveloped through most of the morning across the entire cattle complex as traders are looking at the support from beef values as well as the potential that cash cattle markets may continue to gain support through the week. Lean hog futures are weakening through the day, as nearby futures have softened due to the pressure on cash market weakness. Corn prices are mixed in light trade. December corn futures are 4 cents per bushel lower. Stock markets are higher in light trade. The Dow Jones is 108 points higher while Nasdaq is up 54 points. LIVE CATTLE: Firm buyer activity is seen in all cattle markets although October contracts continue to lead the market higher with at $1.20 per cwt rally as futures have hit $107 per cwt in nearby contracts. The ability to sustain $107 per cwt is helping to keep firm interest in the complex for now, but traders are likely going to need to have some additional momentum in the front month contract in order to insure additional long term support at this point. Cash cattle bids are becoming more available in all areas with bids seen at $104 in the South, the same price as Wednesday and $1 below steady money last week. Bids are seen at $166 to $168 dressed basis in the North, and expected to improve in all areas through the next day as both sides get more serious about trading cattle. The support in beef values and gains in cattle futures is expected to keep cash cattle trade steady to higher by the end of the week, although active trade may be pushed off until Friday. Beef cut-outs at midday are mixed $0.41 lower (select) and up $0.77 per cwt (choice) with active movement of 86 total loads reported (46 loads of choice cuts, 31 loads of select cuts, 2 loads of trimmings, 7 loads of ground beef). FEEDER CATTLE: Despite a slow start Thursday morning, feeder cattle buyers have quickly shifted into high gear as prices have posted triple digit gains at midday. The aggressive moves through the cattle market could help to instill long term buyer support through the next couple of weeks, although September contracts will need to break through $135 per cwt in order to draw additional interest at this point. LEAN HOGS: Early support trickled into lean hog futures as traders tried to limit market pressure following the aggressive selling activity that has developed over the last several trading sessions. Moderate support held through most of the morning, but this has slipped as buyer support faded late in the morning and nearby contracts quickly turned lower with October futures now holding narrow losses. October futures are now once again trading below $55 per cwt while December contracts have dipped below $49 per cwt which is once again setting contract lows, and creating even more concerns as to just how much long-term pressure the market will develop through the complex. Cash prices are lower on the National Direct morning cash hog report. The weighted average price fell $0.75 per cwt to $54.60 per cwt with the range from $52.00 to $55.00 on 6,869 head reported sold. Cash prices are lower on the Iowa Minnesota Direct morning cash hog report. The weighted average price fell $0.69 per cwt to $54.93 per cwt with the range from $52.00 to $55.00 on 2,279 head reported sold. The National Pork Plant Report reported 126 loads selling with prices fell $2.02 per cwt. Lean hog index for 9/13 is at $63.83 down 0.12 with a projected two-day index of $63.59 down 0.24. Rick Kment can be reached at rick.kment@dtn.com (ES) Copyright 2016 DTN/The Progressive Farmer. All rights reserved.