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DTN Midday Livestock Comments          07/17 12:08

   Strong Pressure Redevelops Across Hog Futures     

   Moderate to strong pressure is seen in hog markets early Tuesday. This lack 
of support has eroded any initial gains in cattle trade, and allowed feeder 
cattle to post moderate to strong losses based partially on strength in grain 
markets.   

By Rick Kment
DTN Analyst

GENERAL COMMENTS: 

   Strong losses have quickly redeveloped through the lean hog complex Tuesday 
morning. The firm pressure in cash hog values has continued to add to the 
overall market pressure in the complex. Live cattle futures have remained mixed 
through most of the morning, but midday trade is pulling away from early 
morning gains. Corn prices are higher in light trade Tuesday. July corn futures 
are 6 cents higher. Stock markets are higher in light trade. The Dow Jones is 
59 points higher while Nasdaq is up 42 points.

   LIVE CATTLE:

   Narrow trading ranges are seen midday Tuesday with the focus on strong gains 
in grain and feed markets early in the session. August futures are holding 
losses of 32 cents per cwt, while the rest of the complex is stuck between 10 
cents lower and 10 cents higher in limited activity. Limited market ranges are 
expected to be seen through the rest of the session, keeping markets likely 
hovering in a narrow range. Cash cattle interest remains quiet with bids and 
asking prices still hard to find in all areas of the country. This may add some 
additional uncertainty to the market following the lack of follow-through 
support in futures prices and firm beef values. Active trade is not expected 
until the last half of the week. Boxed Beef cut-outs at midday are higher, 
$1.60 Higher (select) and up $1.24 per cwt (choice) with light movement of 81 
total loads reported (57 loads of choice cuts, 16 loads of select cuts, no 
loads of trimmings, 8 loads of ground beef). 

   FEEDER CATTLE:

   Light to moderate pressure is slowly trickling into feeder cattle futures. 
This is moving prices 10 to 45 cents per cwt lower as limited interest is seen 
in live cattle trade following the strong market gains seen Monday. August 
futures are leading the complex lower with a 45 cent per cwt loss, as prices 
have dipped below $152 per cwt once again. The uncertainty of overall long term 
beef demand as well as firm buyer interest in grain trade is eroding trade in 
all feeder cattle future. 

   LEAN HOGS:

   Moderate to strong pressure is seen through the lean hog complex late 
Tuesday morning with October through April futures holding triple-digit losses. 
The combination with Monday losses has reactivated concerns that additional 
long-term pressure will develop through the entire complex. Cash prices are 
lower on the National Direct morning cash hog report. The weighted average 
price is down $1.26 at $71.50 per cwt with the range from $70.00 to $72.50 on 
6,623 head reported sold. Cash prices are lower on the Iowa/Minnesota Direct 
morning cash hog report. The weighted average price is down $1.25 at $71.47 per 
cwt with the range from $70.00 to $72.50 on 4,353 head reported sold. The 
National Pork Plant Report posted 220 loads selling with carcass values gaining 
$1.15 per cwt. Lean hog index for 7/13 is at $80.34 down 0.57 with a projected 
two-day index of $79.69, down 0.65.

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


(SK)

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