DTN Midday Livestock Comments 09/21 11:52

DTN Midday Livestock Comments 09/21 11:52 Cattle Market Shift Higher Midweek Commercial buying redevelops across all cattle markets Wednesday morning. This has pushed live cattle and feeder cattle firmly higher at midday. Nearby lean hog futures have set new contract lows, still unable to find support. By Rick Kment DTN Analyst GENERAL COMMENTS: Strong commercial buyer support swiftly moved back into the cattle market as traders pushed prices 60 to 95 cents higher at midday. The focus on firming beef values and the potential higher cash values at the end of the week is drawing additional buyer support back to all cattle contracts during morning trade. Lean hog futures remain mixed although nearby contracts have developed pressure as the morning has continued. Corn prices are lower in light trade. December corn futures are 1 cent lower per bushel. Stock markets are lower in light trade. The Dow Jones is 7 points lower while Nasdaq is down 7 points. LIVE CATTLE: Strong buyer support has redeveloped Wednesday morning with gains of 70 to 90 cents holding at midday despite triple digit gains seen early in the session. The strong beef values holding midweek is creating evidence that the market has turned and even though the fall season is upon us, buyers may be looking at higher beef values through the end of the year. The ability to hold futures values over $108 per cwt in nearby contracts is expected to draw additional commercial support through the end of the week. Cash cattle activity is still sluggish with a few bids developing in the North as dressed bids of $168 are seen in Nebraska. Active trade is expected to be delayed until Thursday or Friday, and most likely until after the cattle on feed report on Friday. Beef cut-outs at midday are higher $0.19 higher (select) and up $2.17 per cwt (choice) with active movement of 106 total loads reported (34 loads of choice cuts, 34 loads of select cuts, 7 loads of trimmings, 30 loads of ground beef). FEEDER CATTLE: Firm support is holding in feeder cattle futures late Wednesday morning with October contracts leading the complex higher with a 90 cent gain. Initial triple digit gains which spurred the strong market move in both live cattle and feeder cattle support helped to secure commercial support. This may additional firm gains through the end of the week and not only spark interest in the futures complex, but drive buyer support into cash and beef values during the end of the week. The ability to hold these gains through the end of the session will carry the help sustain market momentum into the last half of the week. LEAN HOGS: Hog futures remain mixed Wednesday morning, although this is not limiting nearby contracts from extending contracts lows in nearby contracts with October and December futures holding triple digit losses at midday as October futures are nearing $54 per cwt for the first time in the contract life, while December futures December futures have dipped below $48 per cwt. Even though deferred futures have held narrow gains, the lack of volume in these late month contracts gives little evidence that the support will draw market support to nearby contracts anytime soon. Cash prices are lower on the National Direct morning cash hog report. The weighted average price fell $0.95 per cwt to $51.37 per cwt with the range from $47.00 to $52.00 on 3,761 head reported sold. Cash prices are unreported due to confidentiality on the Iowa Minnesota Direct morning cash hog report. The National Pork Plant Report reported 205 loads selling with prices falling $1.71 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.