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DTN Midday Livestock Comments          05/27 12:03

   Buyer Interest Develops in Livestock Markets                    

   Early pressure has been overshadowed by a strong round of buyer support 
quickly jumping into the livestock complex. Triple-digit gains in feeder cattle 
futures are helping to draw additional interest back into the complex. 

By Rick Kment
DTN Analyst



GENERAL COMMENTS: 

   Moderate buyer support has quickly redeveloped through the livestock complex 
with strong triple-digit gains seen in feeder cattle and helping to bring 
additional interest into the complex. Strong nearby gains are seen in the lean 
hog futures complex despite the lack of support in cash markets. Corn prices 
are lower in light trade. July corn futures are 4 cents per bushel lower. Stock 
markets are higher in light trade. The Dow Jones is 104 points higher while 
Nasdaq is up 45 points.

   LIVE CATTLE:

   Live cattle prices have bounced higher and lower through the morning across 
the futures complex as traders continue to focus on balancing short and long 
term market needs with expected demand growth. The inability for cattle to 
still break out of the current market range is expected to help keep traders 
cautious about moving aggressively in either direction. Cash cattle markets 
remain quiet, although a few bids are starting to develop in the North and 
South at $157 to $158 on a live basis. It is expected that it still may be 
Thursday or Friday before active trade develops. Beef cut-outs at midday are 
mixed, $0.90 higher (select) and down $0.31 per cwt (choice) with active 
movement of 116 total loads reported (58 loads of choice cuts, 25 loads of 
select cuts, nine loads of trimmings, 24 loads of ground beef).

   FEEDER CATTLE:

   Feeder cattle futures have moved back and forth through the morning with 
buyers now quickly stepping back into the complex. There is expected to be some 
additional support developing over the next couple of hours as the ability to 
focus on longer term supply levels seems to be trumping general apathy when it 
comes to overall beef clearance and the expectation of future market gains. 

   LEAN HOGS:

   Moderate nearby gains are holding across the lean hog futures market with 
traders focusing on the potential to bring some stability back into the pork 
and cash hog markets through the end of the week. Prices have fallen from early 
session highs, but support from renewed midday support in cattle trade may help 
to spark traders interest once again. Cash prices are lower on the National 
Direct morning cash hog report. The weighted average price fell $1.01 per cwt 
to $76.12 per cwt with the range from $69.00.00 to $79.00 per cwt on 2,861 head 
reported sold. Cash prices are lower on the Iowa Minnesota Direct morning cash 
hog report. The weighted average price fell $1.79 per cwt to $77.43 per cwt 
with the range from $69.00.00 to $79.00 per cwt on 291 head reported sold. The 
National Pork Plant Report reported 236 loads selling with prices falling $0.69 
per cwt. Lean hog index for 5/21 is at $83.12 down 0.08, with a projected 
two-day index of $82.91 down 0.21.  

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


(BAS)

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