Dakotaland Feeds, LLC

DTN Midday Livestock Comments 06/15 11:51

DTN Midday Livestock Comments 06/15 11:51

Cattle Futures Surge Higher Friday

Cattle futures are leading the complex higher with gains in August live
cattle hitting a $2.80 per cwt gain. The shift from strong early market losses
has created increased volatility in the lightly traded complex.

By Rick Kment
DTN Analyst


Strong buyer support has flooded into the cattle complex. This may add even
more support if prices in either the live cattle or feeder cattle move to the
daily trading limits before the end of the session. Corn prices are higher in
light trade Thursday. July corn futures are 4 cents higher. Stock markets are
lower in light trade. The Dow Jones is 213 points lower while Nasdaq is down 24


The sharp losses seen early Friday morning were short lived and quickly gave
way to aggressive triple-digit gains in nearby and deferred futures. Nearby
live cattle futures are holding gains above $2 per cwt, with August contracts
nearing the $3 per cwt trading limit at midday. A move to this limit would not
only significantly change the overall market direction, but would also allow
for expanded trade when markets enter the market Monday. Cash cattle trade
seems set on pushing sales into Friday afternoon with bids not moving very far
as more market activity is seen in all areas. Bids are seen at $110 live and
$175 to $178 dressed. The sharp market rally in futures trade could have some
late-day support as feedlot managers continue to focus on aggressive market
expectations. Boxed Beef cut-outs at midday are mixed, $0.71 higher (select)
and down $0.02 per cwt (choice) with light movement of 74 total loads reported
(40 loads of choice cuts, 11 loads of select cuts, 12 loads of trimmings, 11
loads of ground beef).


Aggressive buyer support has flooded into the cattle complex through the
morning Friday. The development of sharp losses early in the session seemed to
create an incredible vacuum that sucked buyer activity into the market once
selling interest slowed. August feeder cattle futures continue to lead the
market higher with a $3.52 per cwt rally. Although overall volume is light, if
gains hold through the end of the session, renewed support is expected to
develop early next week.


Moderate to strong buyer support has moved into the lean hog futures despite
lackluster direction in cash markets through the morning. The strong support
seen across the cattle complex has become a driving force in the entire
livestock market. This move has trickled into lean hog futures with nearby
gains 40 cents to $1 per cwt higher. The overall lack of market consistency is
driven by very limited trade seen through the morning. Cash prices are higher
on the National Direct morning cash hog report. The weighted average price is
up $0.68 at $82.35 per cwt with the range from $76.00 to $84.00 on 3,211 head
reported sold. Cash prices are lower on the Iowa/Minnesota Direct morning cash
hog report. The weighted average price is down $0.03 at $83.40 per cwt with the
range from $76.00 to $84.00 on 1,375 head reported sold. The National Pork
Plant Report posted 142 loads selling with carcass values gaining $1.22 per
cwt. Lean hog index for 6/12 is at $78.71 up 1.53 with a projected two-day
index of $80.09, up 1.38.

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


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