DTN Midday Livestock Comments 09/20 12:10

DTN Midday Livestock Comments 09/20 12:10 Moderate Pressure Slides Into Livestock Futures Tuesday Morning Firm losses develop Tuesday morning in cattle futures as pressure quickly develops at midday. Lean hog futures continue to soften in light trade as nearby contracts add to contract lows. By Rick Kment DTN Analyst GENERAL COMMENTS: Moderate pressure is developing through most nearby livestock futures as trades back away from early positions at midday. Pressure is most evident in nearby feeder cattle futures. Corn prices are higher in light trade. December corn futures are 3 cents higher per bushel. Stock markets are higher in light trade. The Dow Jones is 35 points higher while Nasdaq is up 4 points. LIVE CATTLE: Mixed live cattle futures continue to be seen through live cattle futures with the market complex remaining flat as October through April contracts remain within an extremely narrow trading range while June through October 2017 contracts remain essentially in a sideways pattern. The lack of direction in the market Tuesday is focusing on the lack of direction in the market and focus on position taking and movement in beef markets which is putting pressure in nearby live cattle futures. Cash cattle trade is still undeveloped Tuesday, although a few bids are starting to be seen in Texas at $108 which is nearly $2 per cwt under steady money of cash prices paid when markets were said and done last week. So not a bad place to start bids for the week. Beef cut-outs at midday are mixed $1.28 higher (select) and down $0.38 per cwt (choice) with moderate movement of 85 total loads reported (33 loads of choice cuts, 30 loads of select cuts, 11 loads of trimmings, 12 loads of ground beef). FEEDER CATTLE: Early mixed trade has turned into narrow to moderate losses across the feeder cattle contract with September futures unable to draw buyer support back into the market Tuesday. This pressure is most obvious in the October and November contract but the focus may help to keep buyers from liquidating before the end of the session. LEAN HOGS: Narrow trading ranges are seen through the lean hog futures complex with the complex remaining under light pressure as December futures have fallen below $48 per cwt, but still remain within very narrow trading ranges. The inability to bring wide losses into the complex has helped to keep the market contained for now, although there is a sense of nervousness as nearby contracts are still holding contract lows. Cash prices are lower on the National Direct morning cash hog report. The weighted average price fell $1.39 per cwt to $51.86 per cwt with the range from $48.00 to $52.50 on 3,334 head reported sold. Cash prices are lower on the Iowa Minnesota Direct morning cash hog report. The weighted average price fell $2.05 per cwt to $51.71 per cwt with the range from $48.00 to $52.50 on 738 head reported sold. The National Pork Plant Report reported 217 loads selling with prices gaining $0.56 per cwt. Lean hog index for 9/16 is at $62.20 down 0.85 with a projected two-day index of $61.61 down 0.59. Rick Kment can be reached at rick.kment@dtn.com (ES) Copyright 2016 DTN/The Progressive Farmer. All rights reserved.