DTN Midday Livestock Comments          09/07 12:03

   Livestock Futures Slip in Lackluster Interest

   Trade activity has remained light through the complex Tuesday morning. 
Although traders are technically back from the long weekend, it does not appear 
there is much incentive for active buying to reenter the market. Although 
prices continue to fade, volume is expected to remain light through most of the 
session.   

By Rick Kment
DTN Livestock Analyst

GENERAL COMMENTS: 

   Livestock futures are faded quickly at midday following lack of buyer 
interest through the entire complex early in the week. Corn futures are mixed 
in a narrow range. December corn futures are 1/4 cent higher at midday. Stock 
markets are lower early Tuesday. The Dow Jones is 84 points lower while Nasdaq 
is down 19 points. 

LIVE CATTLE:  

   Moderate to sharp losses are developing through midday Tuesday as traders 
are hitting nearby futures hard through the morning trade activity. The concern 
that cash markets may continue to erode, as well as the expectations that 
consumer buying patterns may slump over the next 30 to 60 days, may limit trade 
interest. Cash live cattle markets are untraded as show lists are mixed. 
Numbers are higher in the South and smaller in the North. Early asking prices 
are starting at $100 in the South and $155 plus in the North. Early bids in the 
south are starting to develop at $96 per cwt. Beef cut-outs at midday are 
mixed, gaining 16 cents per cwt (select) and falling 22 cents per cwt (choice) 
with light movement of 166 total loads reported (65 loads of choice cuts, 49 
loads of select cuts, 10 loads of trimmings, 42 loads of coarse grinds). 

FEEDER CATTLE:  

   Feeder cattle futures are posting moderate to sharp losses with October 
contracts leading the downward change, posting a $1.07 per cwt loss. Trade may 
continue to remain sluggish as traders look for increased direction in the live 
cattle market.  

LEAN HOGS:  

   Lack of early interest through the complex has allowed most nearby contracts 
to fade at midday. October lean hog futures are posting the most significant 
losses, down 52 cents per cwt although trade volume remains sluggish at best. 
There is expected that there may be increased uncertainty about wholesale price 
moves over the next several days or weeks. Cash prices are lower at midday on a 
light run of 169 head. Prices fell $1.68 per cwt with a weighted average of 
$76.85. The trading range is $70.25 to $78.50 per cwt. Fresh pork trade 
reported 6.5 loads of fresh pork product sold on the midday carlot. Lean hog 
index for 9/1 is at $82.66 down 35 with a projected 2 day index of $81.95 per 
cwt, down 71. 

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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