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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 


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