DTN Midday Livestock Comments 08/27 12:23

DTN Midday Livestock Comments 08/27 12:23 Livestock Futures Erode Tuesday Triple-digit losses have slowly developed through morning trade. This left markets focusing in backing away from Monday gains, but unable to spark aggressive seller interest. By Rick Kment DTN Analyst General Comments Moderate to strong pressure has developed late Tuesday morning although the tone and activity levels remain extremely different than over the last couple of days. Limited market pressure trickled into morning trade as losses have slowly built. But there seems to be the focus on underlying support developing which may stabilize price levels over the next couple of days. Corn futures are lower in light morning trade. September corn futures are 1/4 cents lower. Stock markets are lower in active trade. Dow Jones is 125 points lower with NASDAQ down 46 points. LIVE CATTLE: Firm pressure is seen in live cattle trade with futures holding $1 to $1.50 per cwt losses in nearby contracts. The lack of support in the market is evident as traders back away from trade hopes with China. The expectation that this will be a long road before any significant developments are seen has caused October futures to push below $100 per cwt once gain. Cash cattle activity remains quiet with no additional bids or asking prices developing. Trade is expected to hold out until later in the week. Boxed Beef cut-outs at midday are mixed, $0.24 lower (select) and up $0.03 (choice) with light movement of 43 total loads reported (18 loads of choice cuts, 14 loads of select cuts, 8 loads of trimmings, 4 loads of ground beef). FEEDER CATTLE: Firm pressure is seen Tuesday morning as traders have quickly backed up from early week gains. The concern of continued trade issues and firm weakness in live cattle trade has sparked increased underlying weakness through the entire complex. LEAN HOGS: Market pressure has pulled back from the aggressive Monday gains. Although the tone of the market remains weak and prices are lower, significant selling pressure is holding out at this point. It is likely that traders are trying to find a sense of stability given the still firm domestic demand seen across the market. Cash prices are lower on the National Direct morning cash hog report. The weighted average price is down $1.44 at $61.27 per cwt with the range from $55 to $69.50 on 4,539 head reported sold. Pork values firmed following aggressive gains in rib cuts. Pork cutouts added $0.98 per cwt at $80.63 per cwt with 120 loads traded. Lean hog index for 8/22 is $75.94, down 1.10, with a projected two-day index at $74.50, down 1.44. Rick Kment can be reached at rick.kment@dtn.com (CZ) Copyright 2019 DTN/The Progressive Farmer. All rights reserved.