DTN Midday Livestock Comments 08/31 11:55

DTN Midday Livestock Comments 08/31 11:55 Hog Futures Hold Solid Gains Monday Morning Firm buyer support is holding in nearby and deferred lean hog futures, while cattle contracts struggle for consistency. Softness in beef values is adding to pressure in live cattle contracts. By Rick Kment DTN Analyst GENERAL COMMENTS: Wide price swings have been seen Monday morning with live cattle futures eroding as the session continues and feeder cattle unable to hold gains over $2 per cwt in nearby contracts. Lean hog futures are showing the most steady and optimistic support through the morning with firm gains well rooted in nearby and deferred contracts. Corn prices are mixed in light trade. September corn futures are 1/4 cent per bushel higher. Stock markets are lower in light trade. The Dow Jones is 43 points lower while Nasdaq is down 10 points. LIVE CATTLE: Moderate pressure has held through the live cattle complex during morning trade despite the strong push higher in feeder cattle. Traders are focused on the lack of support in beef values as well as softness seen late last week in the cash market. Each day as the Labor Day weekend gets closer, the more concern about lackluster beef demand over the holiday is affecting the entire live cattle market. Traders were looking for a strong boost in beef values to hopefully carry the market into the fall and winter months, but it seems buyer interest remains mediocre at best, which could lock the market into a choppy range. Cash cattle activity remains generally quiet Monday with show lists generally smaller around the region. A few bids are developing Monday in the South which is out of character for this early in the week. But with little to no cash trade developing in the South last week, packers are showing the need for additional cattle. Asking prices are still hard to pin down, but expected to remain around $150 per cwt in the South and $232 and higher in the North. Beef cut-outs at midday are lower, $0.40 Lower (select) and down $0.80 per cwt (choice) with light movement of 63 total loads reported (41 loads of choice cuts, 9 loads of select cuts, 1 load of trimmings, 12 loads of ground beef). FEEDER CATTLE: Feeder cattle futures are mired in volatility once again Monday as early pressure gave way to triple-digit gains, only to be met by additional resistance, especially in deferred contracts. The inability to draw any significant support into the live cattle market is sparking some additional late morning uncertainty and has kept front-month September futures the only contract holding triple-digit gains. Some additional wide market shifts are expected through the remainder of the session. LEAN HOGS: Lean hog futures have been able to draw additional strong buyer support back into the complex early Monday. The focus on collecting even additional buyer support as nearby lean hog futures battle back from midmonth losses seems to be helping to spark some consistency in the "higher prices are still developing" camp. This could draw increased activity, although the focus will continue to be on nearby contracts and the ability to manage current supply levels during the next couple of months. Cash prices are lower on the National Direct morning cash hog report. The weighted average price fell $0.52 per cwt to $70.86 per cwt with the range from $69.30 to $72.00 per cwt on 5,878 head reported sold. Cash prices are lower on the Iowa Minnesota Direct morning cash hog report. The weighted average price fell $0.24 per cwt to $71.88 per cwt with the range from $69.30 to $72.00 per cwt on 2,888 head reported sold. The National Pork Plant Report reported 112 loads selling with prices adding $1.85 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.