DTN Midday Comments on Livestock

 Cattle Futures Weaken Wednesday Morning 

Moderate to sharp losses have developed through the cattle complex. Traders are becoming more concerned about long-term beef demand growth. Lean hog futures are posting moderate gains as firmness is developing in both wholesale pork values and cash hog prices.

By Rick Kment DTN Analyst
GENERAL COMMENTS:
Livestock futures are mixed with cattle futures holding moderate to sharp losses. Lean hog futures are the bright spot of the livestock complex with 30- to 50-cent gains at midday. Corn futures are lower in light trade at midday. July corn futures are holding 9-cent losses at midday. Stock markets are higher in light trade. The Dow Jones is 10 points higher while Nasdaq is up 7 points.
LIVE CATTLE:
Early trade in live cattle futures was mixed in a narrow range. Support steadily eroded through the morning as traders focused on sharp losses in feeder cattle futures and growing concerns surrounding the ability to actively move beef supplies through the upcoming months. Most of the pressure in the live cattle market is centered on deferred contracts, but this is subduing any buyer support in spot month markets. Cash cattle sales are starting to slowly develop in the South. Prices are seen at $126 per cwt. This is a $2 per cwt lower price than last week. The $126 per cwt price is still a strong basis bid, which may be spurring additional activity through the week. Bids are seen in the North, although no sales are yet reported Wednesday. Beef cut-outs at midday are higher, $0.62 per cwt higher (select) and up $3.26 per cwt (choice) with moderate movement of 111 total loads reported (38 loads of choice cuts, 36 loads of select cuts, 9 loads of trimmings, 28 loads of ground beef).


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