DTN Midday Livestock Comments 08/28 11:52

DTN Midday Livestock Comments 08/28 11:52 Feeder Cattle Futures Gain Additional Support Nearby feeder cattle futures are setting the bullish tone of the cattle market once again with gains over $2 per cwt at midday. This creates additional interest through the rest of the cattle market. By Rick Kment DTN Analyst GENERAL COMMENTS: Cattle futures continue to be the bright spot of the livestock complex Friday with feeder cattle futures holding gains of $2 per or greater at midday, with the focus on buyers quickly stepping into what may have been the market low, set midweek. The firmness in outside markets is creating some widespread market support into the entire cattle market Friday. Corn prices are lower in light trade. September corn futures are 1 cent per bushel lower. Stock markets are mixed in light trade. The Dow Jones is 23 points lower while Nasdaq is up 7 points. LIVE CATTLE: Firm buyer support continues to quickly shift back into the live cattle complex with traders focusing on the strong push higher in feeder cattle futures as well as the bounce off of lows set earlier in the week. August futures are currently over $3 per cwt higher from midweek lows, which could help to create a longer-term market rally based on renewed investor interest in the entire market. Cash cattle trade is starting to slowly develop in the North with a few sales seen at $228 per cwt. This would be nearly $4 per cwt lower from last week, but there may be enough interest at this level to establish a market test, and potentially set the tone of the weekly trade. Asking prices in the South are holding at $145 per cwt, although trade has not yet developed at this point. Asking prices remain near $147 and higher in the South and $232 and higher in the North. Beef cut-outs at midday are lower, $0.29 Lower (select) and down $0.58 per cwt (choice) with light movement of 58 total loads reported (23 loads of choice cuts, 13 loads of select cuts, 13 loads of trimmings, 9 loads of ground beef). FEEDER CATTLE: Strong triple-digit gains continue to flood into the feeder cattle futures Friday morning with nearby futures holding over $2 per cwt at midday. The lack of resistance at the end of the week is allowing buyers to quickly turn to the market, bringing nearby contracts over $4 per cwt from the recent lows. Even though this shift higher has been gaining widespread attention, it does very little to change chart activity and given the recent wide shifts in the feeder cattle market, the recent price levels are far from secure. LEAN HOGS: Early pressure in nearby lean hog futures is starting to shift as December through April lean hog futures have posted moderate midday gains. The lack of support in cash hog prices is not limiting traders stepping back into the market at the end of the week. It is likely that late-day moves are more focused on end-of-the-week positioning, than any shift in the overall complex. Cash prices are lower on the National Direct morning cash hog report. The weighted average price fell $1.59 per cwt to $71.05 per cwt with the range from $65.00 to $73.00 per cwt on 3,605 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 142 loads selling with prices adding $0.58 per cwt. Lean hog index for 8/26 is at $78.68 down 0.11, with a projected two-day index of $78.28, down 0.40. Rick Kment can be reached at [email protected] (BAS) Copyright 2015 DTN/The Progressive Farmer. All rights reserved.