DTN Midday Livestock Comments          05/20 12:03

   Livestock Futures Holding Onto Midday Gains

   Trade is expected to remain firm following renewed buyer interest through 
the morning. 

By Rick Kment
DTN Analyst



GENERAL COMMENTS: 

   Livestock futures have shown additional support through late morning. 
Additional buyer interest could develop through the end of the day. Corn 
futures are trading lower in light trade at midday. July corn futures are 
holding 6 cent losses at midday. Stock markets are higher in light trade. The 
Dow Jones is 45 points higher while Nasdaq is up 12 points.

   LIVE CATTLE:

   Moderate to strong gains have developed through the complex with the initial 
downward pressure has been replaced by firmer commercial support. Traders are 
looking for additional buyer interest through the rest of the session. Cash 
cattle markets are undeveloped with bids and asking prices still hard to find. 
Show lists are generally larger going into the week. Beef cut-outs at midday 
are higher, $1.45 per cwt higher (select) and up $0.45 per cwt (choice) with 
moderate movement of 102 total loads reported (42 loads of choice cuts, 46 
loads of select cuts, six loads of trimmings, eight loads of ground beef).

   FEEDER CATTLE: 

   The sharp losses seen through the morning are being replaced by mixed trade 
as the initial shock to the market has worn off. May futures continue to hold 
triple-digit losses, although light gains are seen through the rest of 2013. 
Trade is expected to remain sluggish through the end of the session.

   LEAN HOGS:

   Lean hog futures are holding moderate support through the morning with 
traders once again focusing on potential demand support. The sharp losses 
Friday seem to be overstated, which is sparking firm buying in both nearby and 
deferred futures. Cash prices moved lower on the National Daily Direct morning 
cash hog report. The weighted average price fell $0.01 per cwt to $89.72 per 
cwt with the range from $83.78 to $90.50 per cwt on 3,035 head reported sold. 
The National Pork Plant Report posted 139 loads at midday with carcass values 
gaining $0.11 per cwt. Lean hog index for 5/15 is at $92.51 up 0.36 with a 
projected two-day index of $92.93 up 0.42.

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


(SK)

Copyright 2013 DTN/The Progressive Farmer. All rights reserved.