DTN Midday Livestock Comments

Firm Gains Hold Across Livestock Trade

Rick Kment
By  Rick Kment , DTN Analyst
(DTN photo by Russ Quinn)
GENERAL COMMENTS:

Light to moderate gains are holding across the livestock market as traders are focusing on firming cash market activity which is helping to draw additional commercial support back into the market. Corn prices are higher in light trade. December corn futures are 2 cents higher. Stock markets are higher in light trade. The Dow Jones is 94 points higher while Nasdaq is up 15 points.

LIVE CATTLE:

Firm gains have been seen through the complex with live cattle futures holding gains of 30 to 50 cents per cwt at midday in nearby contracts. The lack of volume through the market has limited interest in deferred futures, although the firmer tone of the market is holding prices steady to 30 cents higher. Cash cattle activity remains sluggish with bids at $106 per cwt live basis redeveloping in both the North and South. Dressed bids are seen at $168 to $170 per cwt which continues to draw buyer support to the complex. Most trade will likely be delayed until Friday at some point. Beef cut-outs at midday are mixed, $0.33 lower (select) and up $0.25 per cwt (choice) with light movement of 75 total loads reported (35 loads of choice cuts, 28 loads of select cuts, three loads of trimmings, 10 loads of ground beef).

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FEEDER CATTLE:

Firm price gains are holding at midday in all feeder cattle contracts. There continues to be some increased overall support developing from follow through buying activity in both live cattle and feeder cattle markets. The overall lack of active cash trade will likely keep most gains subdued through the end of the session.

LEAN HOGS:

Strong morning gains continue to develop in nearby lean hog futures as October and December contracts are holding price support of 70 to 90 cents per cwt at midday. There continues to be increased overall fundamental support over the last few days as strong cash buying is leading the market higher. Cash prices are higher on the National Direct morning cash hog report. The weighted average price added $0.31 at $51.50 per cwt with the range from $46.00 to $53.50 on 7,077 head reported sold. Cash prices higher on the Iowa/Minnesota Direct morning cash hog report. The weighted average price gained $1.11 at $53.11 per cwt with the range from $46.00 to $53.50 on 1,978 head reported sold. The National Pork Plant Report reported 158 loads selling with prices adding $0.01 per cwt. Lean hog index for 10/3 is at $54.97 up $0.58 with a projected two-day index of $55.33, up 0.36.

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

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Rick Kment