DTN Midday Livestock Comments 08/25 12:00

DTN Midday Livestock Comments 08/25 12:00 Aggressive Buying Continues in Lean Hog Complex Strong gains have redeveloped in nearby lean hog futures Tuesday as traders add to the already strong shift seen through the complex Monday. Early gains, which developed in cattle trade, have eased significantly as traders are finding a hard time attracting additional buyer support following Monday's market slide. By Rick Kment DTN Analyst GENERAL COMMENTS: Strong gains continue to hold through the lean hog futures market as any perception that the spark in buyer interest was solely driven by the tumble in outside markets is being dashed by the ability for October futures to maintain $1.70 per cwt gains while most other markets rebound. This initial spark of buyer support has quickly led to additional commercial and noncommercial interest developing around the market. Corn prices are lower in light trade. September corn futures are 3 cents per bushel lower. Stock markets are higher in active trade. The Dow Jones is 356 points higher while Nasdaq is up 151 points. LIVE CATTLE: Lack of follow-through support after initial price gains Tuesday has helped to spark some narrow losses through the entire live cattle complex. Beef values were supportive, but the lack of aggressive price moves and light volume seen in morning cutout reports has led to traders quickly stepping back from early gains. Cash cattle are quiet with bids still undeveloped and may remain that way until the second half of the week. Asking prices are still hard to pinpoint, but once again seen around $150 in the South and $236 and higher in the North. Beef cut-outs at midday are higher, $0.60 higher (select) and up $0.15 per cwt (choice) with light movement of 66 total loads reported (32 loads of choice cuts, 13 loads of select cuts, 4 loads of trimmings, 17 loads of ground beef). FEEDER CATTLE: Early support that quickly stepped into the cattle complex has eroded through most of the morning, although most contracts are holding moderate price gains at midday. August futures have continued to lag the rest of the complex as traders focus on expiration of the contracts soon. This has allowed for August futures to turn lower given the lack of holding power in live cattle futures and narrowing of gains in deferred feeder cattle trade. LEAN HOGS: Follow through buyer support has continued to develop through the lean hog futures market. October contracts have posted another triple digit rally, currently $1.70 per cwt higher at midday, helping to establish front month prices above the $65 per cwt trading range. The narrowing of the spread between October contracts and cash hog index values could continue to spark some additional interest through the entire complex as traders focus on the potential of stable cash market support and firming pork demand. Cash prices are lower on the National Direct morning cash hog report. The weighted average price fell $1.58 per cwt to $72.35 per cwt with the range from $68.00 to $74.50 per cwt on 3,187 head reported sold. Cash prices are lower on the Iowa Minnesota Direct morning cash hog report. The weighted average price fell $0.69 per cwt to $74.15 per cwt with the range from $72.50 to $74.50 per cwt on 372 head reported sold. The National Pork Plant Report reported 279 loads selling with prices adding $1.98 per cwt. Lean hog index for 8/21 is at $78.89 down 0.20, with a projected two-day index of $78.79, down 0.10. Rick Kment can be reached at rick.kment@dtn.com (BAS) Copyright 2015 DTN/The Progressive Farmer. All rights reserved.