Headline News

DTN Midday Livestock Comments          06/21 12:05

   Firm Gains Holding Across Cattle Trade 

   Strong buyer interest has quickly developed in feeder cattle markets 
Wednesday morning. This has sparked renewed follow-through support across the 
entire complex, which may help to draw additional support through the entire 
livestock market. 

By Rick Kment
DTN Analyst


   Mixed trade is seen through livestock trade as trade volume has slowed 
through the entire complex. There may be some additional late day shifts 
developing through the complex, but the moves seen in the complex continue to 
bring additional market activity back into the market and could spark some 
additional support to the cattle complex through the end of the week. Corn 
prices are mixed in light trade. July corn futures are 1/4 cent lower. Stock 
markets are mixed in light trade. The Dow Jones is 56 points lower while Nasdaq 
is up 30 points.


   Light to moderate gains are holding at midday following a mixed session with 
prices moving back and forth on either side of unchanged for most of the 
morning. The strong support in feeder cattle markets are helping to draw 
increased support to front month June contracts, while the rest of the complex 
has been limited to very narrow moves at midday. Light trade volume is expected 
to be seen through the rest of the session. Cash cattle markets developed with 
activity on the Fed Cattle Exchange Auction report today listed a total of 
2,148 head, with 457 actually sold, 1,369 head listed as unsold, and 322 listed 
as PO. The state by state breakdown looks like this: KS 304 total head, with 
zero head sold, 174 head unsold and 130 head PO; NE 904 total head, with zero 
head sold; TX 553 total head, with 282 head sold at $123.00, 79 head unsold, 
and 192 head listed as PO; CO 91 total head, with 0 head sold; IA no test; 
other states 296 total head, with 175 head sold (SD) at $123.00, and 121 head 
unsold (OK). The weighted average is $123.00. Feedlot activity remains 
generally sluggish with moderate bids in the North at $122 live basis and $196 
dressed. A few sales have been reported in the South through the morning at 
$123. This is $8 lower than last week's business. More active trade is likely 
to develop through the rest of the week, but may be delayed until Friday. Beef 
cut-outs at midday are lower, $0.19 lower (select) and down $0.96 per cwt 
(choice) with light movement of 83 total loads reported (39 loads of choice 
cuts, 27 loads of select cuts, no load of trimmings, 17 loads of ground beef). 

   Firm buying support is still holding across feeder cattle futures. Even 
though traders have backed away from triple-digit gains seen early in the 
complex, the move continues to be based on short covering activity and the 
expectation that additional commercial interest may continue to develop through 
the rest of the market. Nearby gains are holding $1 to $1.50 per cwt at midday 
although volume remains light through the end of the end of the morning.    


   Mixed trade is seen across the lean hog futures complex as traders remain 
focused on nearby summer contracts with increased buyer activity moving into 
July contracts. This is pushing front month contracts to near $86 per cwt with 
traders focusing on additional fundamental support through the month of June. 
Pressure in deferred contracts remain the focus of most other traders, although 
losses are limited due to the stability in strong cash and pork values. Cash 
prices are lower on the National Direct morning cash hog report. The weighted 
average price fell $0.87 at $85.89 per cwt with the range from $85.00 to $87.50 
on 6,550 head reported sold. Cash prices are lower on the Iowa/Minnesota Direct 
morning cash hog report. The weighted average price fell $0.92 at $86.57 per 
cwt with the range from $85.00 to $87.50 on 3,510 head reported sold. The 
National Pork Plant Report reported 264 loads selling with prices gaining $2.78 
per cwt. Lean hog index for 6/19 is at $86.55 up $1.23 with a projected two-day 
index of $86.03 up $1.48. 

   Rick Kment can be reached at rick.kment@dtn.com 


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