DTN Midday Livestock Comments 09/28 12:02

DTN Midday Livestock Comments 09/28 12:02 Cattle Futures Mixed in Choppy Morning Trade Live cattle futures are contained to a narrow range at midday following a wide and volatile morning. The lack of support seen Tuesday has created combined follow-through liquidation followed by aggressive short covering in all markets. By Rick Kment DTN Analyst GENERAL COMMENTS: Live cattle futures have traded in a narrowly mixed price range at midday. The aggressive early losses seen at opening bell have allowed buyers to step back into all livestock markets. It is uncertain just how much additional market direction of volume will be seen through the rest of the complex, and how it will affect closing market prices. 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 12 points lower while Nasdaq is down 7 points. LIVE CATTLE: Sharp early losses quickly developed through live cattle futures Wednesday morning, but selling pressure was short lived as buyer support swept into the market. This brought some much needed stability back into the complex. But at midday, prices seem to have been unable to move significantly in either direction with prices mixed in a narrow range due to overall market inactivity. The lack of overall direction may create widespread price shifts near closing bell and bring about another price move. Cash cattle trade has been seen Wednesday morning in the South at $104, which is $3 per cwt lower than the average last week. Trade volume at this point is still light, but may be enough to start to establish a trend. But bids are starting to quickly back away from price levels as bids are now backed to $103 per cwt in the South. Some trade has also been seen live basis in the North at $104, which is $2 lower than Northern trade last week. It is uncertain just how much activity will redevelop through the afternoon, or if activity will be delayed until later in the week. Beef cut-outs at midday are higher $0.27 higher (select) and up $2.70 per cwt (choice) with active movement of 135 total loads reported (59 loads of choice cuts, 31 loads of select cuts, 28 loads of trimmings, 18 loads of ground beef). FEEDER CATTLE: Triple-digit gains have quickly developed in nearby feeder cattle futures with October contracts leading the charge Wednesday morning. Although the complex remains still well undersold, the break away from early market losses which developed at opening bell has created renewed market support, and commercial interest through the entire complex. Even at current price levels, October contracts remain nearly $1 per cwt under previous contract lows set in early September, causing trader uncertainty as to just how much underlying support will develop through the rest of the week. LEAN HOGS: Lean hog futures continue to hold moderate gains at midday as buyers remain comfortable despite the continued pressure in the cash markets and lack of strong support in pork values. December futures are holding a 55 cent gain, as contracts remain at $47 per cwt at midday. Although these contracts remain near contract lows, the ability to build off of these levels through the end of the week and push prices higher through the month of October could spark additional long term support through the entire complex. Cash prices are lower on the National Direct morning cash hog report. The weighted average price fell $1.35 per cwt to $48.61 per cwt with the range from $46.00 to $50.00 on 3,408 head reported sold. Cash prices are lower on the Iowa Minnesota Direct morning cash hog report. The weighted average price fell $0.87 per cwt to $49.46 per cwt with the range from $49.00 to $50.00 on 587 head reported sold. The National Pork Plant Report reported 145 loads selling with prices adding $0.12 per cwt. Lean hog index for 9/26 is at $58.21 down 0.72 with a projected two-day index of $57.63 down 0.58. Rick Kment can be reached at rick.kment@dtn.com (ES) Copyright 2016 DTN/The Progressive Farmer. All rights reserved.