Livestock futures are trading mostly lower at midday despite buyers stepping into the cattle complex earlier in the session. The moderate shifts seen through the morning are likely to keep prices variable through the rest of the session. Strong underlying pressure is redeveloping in hog trade despite firming pork values on the morning report. Corn prices are lower in light trade. September corn futures are 3 cents lower. Stock markets are mixed in light trade. The Dow Jones is 9 points higher while the Nasdaq is down 6 points.
LIVE CATTLE:
Live cattle futures have turned lower once again at midday after trading in a moderately mixed range through the morning Monday. August live cattle futures have focused on the bearish tone seen in nearby feeder cattle trade, with losses of 52 cents per cwt at midday. Even though moderate losses continue to hold at midday, the ability for buyers to actively step into the complex through the morning has helped to put focus on the potential of market stability through the week. Cash cattle activity remains quiet with traders focusing on showlist distribution and inventory-taking through much of the morning, which will likely keep bids and asking prices generally undeveloped through the session. It is likely to be the middle to end of the week before active cash market activity redevelops. The concern surrounding growing supplies may continue to put pressure on cash values. Beef cut-outs at midday are lower, $0.06 lower (select) and down $0.78 per cwt (choice) with light movement of 58 total loads reported (29 loads of choice cuts, 11 loads of select cuts, 10 loads of trimmings, 7 loads of ground beef).
FEEDER CATTLE:
Mixed trade continues to be seen in feeder cattle futures as trade has bounced higher and lower through the morning. Most activity has been focused on the defensive tone of the market with nearby contracts holding moderate to strong losses through much of the morning. August through November futures are holding triple-digit losses at midday while the rest of the complex is mixed in a narrow range. The back and forth seen in the market is creating some additional concerns through all trade, which is focusing on the inability for traders to draw additional market activity back into the complex.
LEAN HOGS:
Strong pressure has redeveloped through the lean hog futures complex with traders focusing once again on the overall lack of support in cash markets on a national level while traders are unable to hold summer support values. October futures have fallen below $65 per cwt, and a move below January support of $64.40 per cwt would likely spark additional liquidation through the complex. All contracts through April 2018 are posting triple-digit losses, which continues to limit overall market support early in the week. Cash prices are lower on the National Direct morning cash hog report. The weighted average price fell $0.88 at $72.48 per cwt with the range from $68 to $74 on 3,424 head reported sold. Cash prices are higher on the Iowa/Minnesota Direct morning cash hog report. The weighted average price gained $0.53 at $73.74 per cwt with the range from $68 to $74 on 264 head reported sold. The National Pork Plant Report reported 149 loads selling with prices adding $0.62 per cwt. Lean hog index for 8/17 is at $83.19 down $0.51 with a projected two-day index of $82.35, down $0.84.
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