DTN Midday Livestock Comments 09/03 11:56
Sharp Gains Develop in Cattle Futures
Triple-digit gains are holding in both live cattle and feeder cattle trade
at midday. The ability to hold this support through closing bell will likely go
a long way in helping to develop additional end of the week support to the
By Rick Kment
Livestock futures are mixed with cattle trade pushing higher. The
development of triple-digit gains in both live cattle and feeder cattle markets
is helping to regain some underlying support through the complex. Lean hog
futures are weaker at midday with moderate losses allowing the complex to coast
into the end of the week. Corn prices are lower in light trade. September corn
futures are 5 cents per bushel lower. Stock markets are higher in light trade.
The Dow Jones is 101 points higher while Nasdaq is up 15 points.
Firm triple-digit gains are holding in live cattle futures at midday,
although there remain questions about if buyer support will be able to hold
through the end of the session. The price variability during the trading day
has been very evident through the last couple of weeks, but consistency in
closing the market anywhere near session highs has been lacking. Without
consistent upward movement over the next couple of days, the live cattle market
is going to prove very little, and likely remain in the current choppy pattern.
Cash cattle markets remain generally undeveloped with bids remaining in the
same range as seen over the last couple of days. Bids in the South are seen
around $143 to $144 with Northern Bids of $223 to $225 per cwt. Although the
desire to get business done by the end of the day exists on both sides, desire
enough typically is not enough to get it accomplished, which may push activity
into Friday sometime. Asking prices are at $146 to $148 per cwt in the South
and $228 and higher in the North. Beef cut-outs at midday are lower, $1.02
lower (select) and down $0.78 per cwt (choice) with moderate movement of 91
total loads reported (46 loads of choice cuts, 16 loads of select cuts, 7 loads
of trimmings, 22 loads of ground beef).
Sharp triple-digit gains have redeveloped through the feeder cattle futures
market late Thursday morning with traders focusing on potential additional
buyer support coming from the weakness in grain prices. But even though strong
market support seen through morning trade is being looked at with a healthy
dose of skepticism as traders are very aware of just how quickly any support
can quickly evaporate. The ability to hold these gains into closing bell would
go a long way in helping to rebuild market confidence, but this support will
likely need to be seen Friday.
Moderate pressure is holding through the lean hog futures complex with early
mixed trade giving way to traders trying to square positions before the
weekend. Even though it is only Thursday, the expected light trade through the
rest of the week could spark some additional market shifts yet Thursday. Cash
prices are lower on the National Direct morning cash hog report. The weighted
average price fell $1.08 per cwt to $69.85 per cwt with the range from $63.00
to $69.25 per cwt on 5,607 head reported sold. Cash prices are lower on the
Iowa Minnesota Direct morning cash hog report. The weighted average price fell
$1.17 per cwt to $70.43 per cwt with the range from $63.00 to $69.25 per cwt on
2,822 head reported sold. The National Pork Plant Report reported 214 loads
selling with prices falling $0.04 per cwt. Lean hog index for 9/1 is at $76.88
down 0.35, with a projected two-day index of $76.39, down 0.49.
Rick Kment can be reached at email@example.com
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