DTN Midday Livestock Comments 09/22 12:05

DTN Midday Livestock Comments 09/22 12:05 Live Cattle Futures Slide Lower Midday Thursday Pressure developed late Thursday morning in nearby live cattle futures with contracts holding 40 to 70 cent losses. The lack of support in live cattle futures quickly turned to focus away from firm gains seen midweek onto protection taking ahead of the cattle on feed report at the end of the week. By Rick Kment DTN Analyst GENERAL COMMENTS: Moderate pressure has developed in live cattle futures at midday despite gains seen early in the session. The support in feeder cattle markets continue to hold, although the pressure quickly developing across the live cattle market is expected to erode the feeder cattle support before the end of the session. Hog futures are limited to narrow trading ranges, as traders try to build a market floor at the end of the week. Corn prices are lower in light trade. December corn futures are 4 cents lower per bushel. Stock markets are higher in light trade. The Dow Jones is 111 points higher while Nasdaq is up 35 points. LIVE CATTLE: Live cattle futures moved higher early Thursday morning, but the inability to draw additional support at midday has quickly pulled prices lower. This has accounted for losses of 45 to 80 cent losses, and created a wide market shift in all markets despite firming beef values and the potential for steady to higher cash cattle trade at the end of the week. Light volume is expected to be seen during the rest of the session, which may allow for prices to fluctuate once again over the next couple hours of trade. Cash cattle markets are quiet with bids undeveloped at this point. It is possible that some bids may start to be seen through the end of the day, but more likely that activity may be delayed until Friday. Asking prices are also slow to develop with feeders slow to put too much out there given the movement in the market through the last half of the week. Active trade may be delayed until the second half of the day Friday. Beef cut-outs at midday are higher $0.76 higher (select) and up $69 per cwt (choice) with light movement of 67 total loads reported (29 loads of choice cuts, 23 loads of select cuts, 3 loads of trimmings, 13 loads of ground beef). FEEDER CATTLE: The feeder cattle continues to be the market leader Thursday morning as moderate gains are sustaining the cattle market with nearby prices 12 to 80 cents higher at midday. Deferred futures have given back early gains, currently unchanged, but the underlying support remains supportive as traders look for additional market activity in nearby contracts as well as potential direction in both the upcoming cattle on feed report as well as cash cattle trade. LEAN HOGS: Hog futures are mixed in a narrow range in nearby contracts with trade hovering from 15 cents lower in October contracts to 40 cents higher in December futures as traders have remained unable to break out of a moderate market shift through the morning. The midweek pressure seen Wednesday was able to limit buyer support so far, but traders have been able to limit additional selling to this point, which for now seems to be creating a temporary market bottom and may serve as a draw for additional commercial support. Triple-digit gains are seen in summer 2017 contracts, which could spark additional underlying support through the rest of the complex through the rest of the complex. Cash prices are lower on the National Direct morning cash hog report. The weighted average price fell $0.94 per cwt to $51.02 per cwt with the range from $47.00 to $52.50 on 4,262 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 181 loads selling with prices falling $1.27 per cwt. Lean hog index for 9/20 is at $60.96 down 0.65 with a projected two-day index of $60.48 down 0.48. Rick Kment can be reached at rick.kment@dtn.com (ES) Copyright 2016 DTN/The Progressive Farmer. All rights reserved.