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DTN Midday Livestock Comments          06/22 12:15

   Cattle Trade Stabilizes Late Friday Morning   

   Limited market activity has left cattle markets with very little reason to 
spark additional wide-ranging market moves late in the week. Narrow moves in 
cattle trade is being offset by strong pressure in the hog complex. 

By Rick Kment
DTN Analyst

GENERAL COMMENTS: 

   Light to moderate gains in cattle trade Friday morning are being offset by 
pressure in the hog complex. The continued weakness in nearby and deferred lean 
hog futures has sparked liquidation through the end of the week. Corn prices 
are lower in light trade Tuesday. July corn futures are 1/4 cent lower. Stock 
markets are mixed in light trade. The Dow Jones is 169 points higher while 
Nasdaq is down 4 points.

   LIVE CATTLE:

   Mixed trade is seen across live cattle futures with very limited trade 
volume developing across the entire complex. This is keeping prices 35 cents 
lower in June futures, while the rest of the complex his holding steady to 30 
cents higher. There is increased uncertainty surrounding the lack of direction 
in cash trade and mixed moves in beef values. Traders may continue to focus on 
the ability to spark some early week interest with the upcoming Fourth of July 
holiday hopefully sparking some renewed beef demand. Cash activity remains 
generally quiet across most areas. There was limited trade reported in Texas at 
$110 per cwt through the morning. This is generally $2 per cwt lower than last 
week's trade average. Bids are seen at $108 to $110 live and $172 to $175 
dressed. It may be after the cattle on feed report when active trade develops 
in most areas. Asking prices are holding at $115 live and $183 dressed. Boxed 
Beef cut-outs at midday are mixed, $2.32 higher (select) and down $0.30 per cwt 
(choice) with light movement of 49 total loads reported (16 loads of choice 
cuts, 14 loads of select cuts, no loads of trimmings, 19 loads of ground beef). 

   FEEDER CATTLE:

   Narrow gains have continued to hold across feeder cattle futures with prices 
seen 2 to 25 cents per cwt higher at midday. The overall lack of direction from 
fundamental and technical factors continues to create some concerns through the 
entire complex. Traders are looking for additional direction following the 
cattle on feed report, but for now it is not expected that any major surprises 
will develop in the market which would quickly adjust market direction early 
next week. 

   LEAN HOGS:

   Moderate to strong pressure is seen through lean hog futures with active 
losses seen in front-month July contracts. This is pushing prices $1.25 per cwt 
lower, and below $80 per cwt. The other nearby contracts are holding losses 
near $1 per cwt which is adding overall pressure to the entire hog complex at 
the end of the week. Cash prices are lower on the National Direct morning cash 
hog report. The weighted average price is down $0.63 at $80.95 per cwt with the 
range from $73.00 to $81.49 on 2,855 head reported sold. Cash prices are lower 
on the Iowa/Minnesota Direct morning cash hog report. The weighted average 
price is down $2.95 at $78.68 per cwt with the range from $74.00 to $81.00 on 
402 head reported sold. The National Pork Plant Report posted 158 loads selling 
with carcass values falling $0.19 per cwt. Lean hog index for 6/19 is at $85.14 
up 1.09 with a projected two-day index of $85.79, up 0.65.

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


(SK)

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