DTN Midday Livestock Comments 10/11 12:07

DTN Midday Livestock Comments 10/11 12:07 Live Cattle Futures Shift To Narrowly Mixed Trade Midday Tuesday Firm early support Tuesday morning is easing in nearby live cattle futures Midday. Lack of follow through support and concern of pressure in outside markets is starting to bring uncertainty to nearby live cattle markets, while feeder cattle and lean hog futures continue to hold firm nearby gains late in the session. By Rick Kment DTN Analyst GENERAL COMMENTS: Cattle futures remain mixed at midday as traders have pulled back from moderate support seen through the morning in live cattle and feeder cattle futures which developed during early trade. Lean hog futures remain mostly higher following firm but light follow-through buyer support which is developing Tuesday morning. Corn prices are higher in light trade. December corn futures are 2 cents higher per bushel. Stock markets are lower in light trade. The Dow Jones is 150 points lower while Nasdaq is down 50 points. LIVE CATTLE: Live cattle futures are mixed in a narrow range following prices backing away from moderate to firm gains through the morning. October futures have been unable to gain support, despite the moves higher in the rest of the complex. The ability that the cattle market to not follow the sharp trend lower seen Monday and create market stability is expected to be considered positive, and help to draw support later in the week. Cash cattle markets are quiet early Monday with show lists smaller in all areas. The expectation that bids and asking prices will be delayed until Tuesday and potentially Wednesday may keep trade from developing until the last half of the week. Beef cut-outs at midday are mixed $1.15 lower (select) and up $0.22 per cwt (choice) with light movement of 76 total loads reported (36 loads of choice cuts, 16 loads of select cuts, 9 loads of trimmings, 14 loads of ground beef). FEEDER CATTLE: Light to moderate gains are holding at midday after prices have bounced higher and lower during the morning Tuesday. The ability to keep prices from moving significantly lower Tuesday morning, October contracts are trying to etch out moderate support with 75 cent gains developing at midday. A close higher would likely help to draw additional commercial support back into the market midweek and potentially draw additional follow through interest later in the week, although this same routine has been replayed several times in the last few weeks with only limited success, but there is always hope that the next round be different. LEAN HOGS: Firm gains have developed through the morning Tuesday through the lean hog futures complex as traders have pushed October lean hog futures markets back above $51 per cwt. The moderate support seen in all nearby contracts has been refreshing through the complex which has needed a break from the pressure over the last couple of weeks. Even though strong gains have not developed through the last couple of sessions, the ability to consistently bring light to moderate buyer support back into the complex on a regular basis may spark some additional underlying support to the market and help to redevelop consistency on which traders can build trader support through the rest of the month. Cash prices are unreported at this time on the National Direct morning cash hog report. Cash prices are unreported at this time on the Iowa Minnesota Direct morning cash hog report. The National Pork Plant Report reported 213 loads selling with prices adding $0.07 per cwt. Lean hog index for 10/7 is at $52.99 down 0.73 with a projected two-day index of $52.82 down 0.17. Rick Kment can be reached at rick.kment@dtn.com (ES) Copyright 2016 DTN/The Progressive Farmer. All rights reserved.