DTN Midday Livestock Comments

GENERAL COMMENTS:

Moderate to strong market weakness has been seen through the livestock trade Thursday morning. Pressure in hog trade has eased at midday as stronger pork values have helped to draw commercial buyers back into the complex. Corn prices are mixed in light trade. September corn futures are 2/3 cent lower. Stock markets are lower in light trade. The Dow Jones is 6 points lower while Nasdaq is down 12 points.

LIVE CATTLE:

Moderate pressure has redeveloped across live cattle trade Thursday morning as strong market pressure in feeder cattle activity continues to be the main driving force behind the weaker market moves. Nearby live cattle futures are holding losses of 40 to 80 cents per cwt based on expected continued cash market pressure and softness in beef values, while narrow losses are seen in deferred futures. Trade is expected to remain sluggish through the last hour of trade, although very little market direction will likely develop. Cash cattle markets are slow to develop besides a few additional bids seen in the North through the morning. Bids are seen at $106 to $107 live and $170 to $173 dressed, although given the bearishness of both futures trade and beef values, packers are not aggressive in pushing for higher prices than paid midweek. Additional trade is expected to need to be done before the week is over, but it may be delayed until after the cattle on feed report is released Friday. Beef cut-outs at midday are lower, $0.60 lower (select) and down $0.37 per cwt (choice) with moderate movement of 99 total loads reported (48 loads of choice cuts, 20 loads of select cuts, 18 loads of trimmings, 14 loads of ground beef).

FEEDER CATTLE:

Sharp triple-digit losses have flooded into the feeder cattle futures complex Thursday morning with nearby contracts holding losses nearing $2 per cwt. The concern that increased supplies will be even more bearish on the entire market over the coming weeks and months and will add even more uncertainty to the meat markets in the near future.

LEAN HOGS:

Moderate to strong market weakness developed through the morning Thursday as traders focused on the overall lack of support across the rest of the livestock markets and general fundamental pressure. But with pork values posting a strong bounce at midday has created firm commercial buyer interest to redevelop across nearby lean hog futures as nearby contracts are now steady to higher. The ability to stabilize the lean hog complex through the end of the week, could actually change the long term direction of the market through the end of the month. Cash prices are lower on the National Direct morning cash hog report. The weighted average price fell $1.40 at $67.77 per cwt with the range from $65.00 to $69.00 on 4,567 head reported sold. Cash prices are lower on the Iowa/Minnesota Direct morning cash hog report. The weighted average price fell $1.22 at $67.95 per cwt with the range from $66.00 to $69.00 on 2,107 head reported sold. The National Pork Plant Report reported 120 loads selling with prices gaining $1.39 per cwt. Lean hog index for 8/22 is at $80.49 down $1.04 with a projected two-day index of $79.40, down $1.09.

Rick Kment can be reached at rick.kment@dtn.com

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