DTN Midday Livestock Comments 05/29 12:03

DTN Midday Livestock Comments 05/29 12:03 Hog Prices Rebound Midmorning Light but steady buyer support moved back into lean hog futures with traders focusing on underlying technical support near $86 per cwt in August futures. By Rick Kment DTN Analyst General Comments Mixed trade continues in live cattle futures with limited short-term buyer support based on firming beef values. Traders remain concerned about growing production costs that are adversely affecting feeder cattle futures. Corn futures are higher in moderate trade with July up 4 cents. Stock markets are lower in light trade. The Dow Jones is 306 points lower with the NASDAQ down 71 points. LIVE CATTLE: Live cattle futures are contained within a mixed trading range with prices hovering from 45 cents lower to 35 cents higher in limited overall direction. The focus on recent beef value support and the potential for stability in cash cattle trade is helping to rekindle buyer interest through the front-month June futures. Meanwhile, prices through late 2019 have posted light-to-moderate losses on continued concerns of supply growth, while building long-term export demand still raises questions. Limited movement is expected through the end of the session with very little additional long-term direction developing following the choppy range-bound market shifts during the holiday week. Cash cattle trade remains undeveloped Wednesday morning, although a few bids are trickling in at $116 per cwt live and $185 per cwt dressed. Asking prices remain at $117 to $118 live and $188 and higher dressed, but have become much more available Wednesday morning. It is uncertain if cash trade will develop in the South yet Wednesday. But, given the trend over the last several weeks, it appears that both sides are attempting to reach a deal on a few cattle, at least before moving into the last half of the week. Boxed beef cut-outs at midday are higher, up $0.49 (select) to up $0.58 per cwt (choice) with light movement of 72 total loads reported (37 loads of choice cuts, 21 loads of select cuts, 4 loads of trimmings, 10 loads of ground beef). FEEDER CATTLE: Triple-digit losses are holding through feeder cattle trade with traders focusing on the inability to maintain early morning support. With corn futures trading mixed Wednesday morning, there seems to be limited buyer interest as traders try to account for feed market uncertainty due to delayed planting and concerns of long-term corn and soybean production that will affect feeder cattle markets and production costs for months and years to come. The August futures contract is leading the complex lower, down $1.22 per cwt. LEAN HOGS: Light-to-moderate buyer support has moved back into lean hog trade Wednesday morning following aggressive pressure over the last week. Nearby contracts have tumbled over $8 per cwt in the last couple of weeks. Traders are focusing on the potential to establish short-term support at $84 per cwt in the June futures contract, while the July contract is attempting to defend market support near $86 per cwt. Current market weakness in cash trade is adding to the uncertainty about renewed support. Cash prices are unavailable due to reporting delays on the National Direct morning cash hog report. Cash prices unreported on the Iowa/Minnesota Direct morning cash hog report. Pork cutouts are unreported due to delays. Lean hog index for 5/24 is $83.31, down $0.71, with a projected two-day index at $82.56, down $0.75. Rick Kment can be reached at rick.kment@dtn.com (BAS) Copyright 2019 DTN/The Progressive Farmer. All rights reserved.