DTN Midday Livestock Comments          09/08 12:02

   Live Cattle Futures Surge Higher

   Strong renewed support returned to the live cattle market Wednesday morning 
following the sharp losses early in the week. Widespread cash cattle trade 
developed Wednesday morning as steady money is able to close the deal on a good 
number of cattle midweek.   

By Rick Kment
DTN Livestock Analyst

GENERAL COMMENTS: 

   Strong buying is developing across the complex, with live cattle futures 
leading the surge higher. The movement of cash cattle at steady money seems to 
be helping draw increased interest into the live cattle market Wednesday 
morning. Corn futures are lower in a narrow range. December corn futures are 
1/4 cent lower at midday. Stock markets are higher in moderate buying support. 
The Dow Jones is 77 points higher while Nasdaq is up 26 points. 

LIVE CATTLE:  

   Live cattle futures are moving sharply higher through early trade with many 
traders focusing on the sharp losses early in the week as being oversold due to 
lack of active trade. The surge higher is being confirmed by the midday move 
higher in the boxed beef trade. With market fundamentals seemingly holding well 
midweek, trade interest could intensify through the end of the session. Cash 
trade has been slammed into gear early Wednesday with trade activity heavy 
through Kansas and light to moderate in most other regions. Southern prices are 
listed at $97 to $98 with most prices at $97 to $97.50 per cwt. Dressed 
business in the north are priced at $152 to $153 per cwt. Overall steady to 
firm trade is likely to keep activity strong through most of the day. Beef 
cut-outs at midday are higher, gaining 23 cents per cwt (select) and 23 cents 
per cwt (choice) with moderate movement of 206 total loads reported (95 loads 
of choice cuts, 59 loads of select cuts, 13 loads of trimmings, 39 loads of 
coarse grinds). 

FEEDER CATTLE:  

   Feeder cattle futures are gaining additional support following the increased 
support in the live cattle market through Wednesday morning. The lack of 
direction in the corn market is helping to give additional firmness to the 
nearby feeder cattle futures. Following the tumble Monday, nearby futures are 
at the lower end of the current trading range, which may hold over the near 
futures.  

LEAN HOGS:  

   Moderate to midday support is holding in the lean hog market following the 
sharp losses Tuesday. The expectations that additional hog buying is needed in 
order to keep up with the post holiday procurement schedule should keep prices 
supported through the near trade. Cash prices are lower at midday on a light 
run of 910 head. Prices fell $1.45 per cwt with a weighted average of $78.81. 
The trading range is $78.00 to $79.00 per cwt. Fresh pork trade reported 6.5 
loads of fresh pork product sold on the midday carlot. Lean hog index for 9/3 
is at $81.44 down 51 with a projected two-day index of $81.53 per cwt, up 9. 

PORK BELLIES:  

   The 14-to-16-pound bellies are unreported on the midday carlot report. 

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


(SK)

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