DTN Midday Livestock Comments          09/02 12:07

   Livestock Futures Rally Thursday

   Moderate support jumped into the market as increased non commercial trade 
activity quickly stepped up to the plate. Fundamental factors are neutral to 
bullish, although most of the moves comes from fund-buying activity.  

By Rick Kment
DTN Livestock Analyst

GENERAL COMMENTS: 

   Livestock futures are posting strong rallies as moderate fund support is 
jumping back into the market. The uniform move higher through the complex is 
adding consistency to the market with nearby futures nearing $1 gains in all 
markets. Corn futures are fractionally lower in light trade. September corn 
futures are 1 cent lower at midday. Stock markets are higher in light trade. 
The Dow Jones is 6 points higher while Nasdaq is up 13 points. 

LIVE CATTLE:  

   Live cattle futures continue to move sharply higher in light to moderate 
trade. October futures are posting a $1 higher move pushing front-month futures 
to $98.75 per cwt. With the expected move lower in cash cattle prices, the 
October futures will be $1 over cash markets, which is traditionally in light 
with normal pricing patterns. Cash activity is still light Thursday morning 
with overall sales numbers this week in the South lighter than expected, but 
trade could be wrapped up if a neutral ground can not be reached. Bids are at 
$97 in the South and $153 in the North. The light trade Tuesday seems to have 
set the tone in the market. Asking prices are at $98 to $99 in the South and 
$155 in the North. Beef cut-outs at midday are higher, gaining 55 cents per cwt 
(select) and 33 cents per cwt (choice) with light movement of 191 total loads 
reported (61 loads of choice cuts, 60 loads of select cuts, 20 loads of 
trimmings, 50 loads of coarse grinds). 

FEEDER CATTLE:  

   Feeder cattle futures are posting moderate gains given the lack of upward 
movement in the corn market. Traders are focusing on the rally in the live 
cattle market as well as renewed expectations that demand support could hold on 
for the foreseeable future. 

LEAN HOGS:  

   Strong morning support has jumped into the market. The rally is likely to be 
driven by fund-buying activity as October futures are $1.20 higher in light to 
moderate activity. The expectation that pork markets may stabilize at the end 
of the week is helping to draw light commercial buying into the market, 
especially given the additional reduction in average hog weights this week. 
Cash prices are lower at midday on a light run of 508 head. Prices fell $1.02 
per cwt with a weighted average of $77.00. The trading range is $76.00 to 
$77.00 per cwt. Fresh pork trade reported nine loads of fresh pork product sold 
on the midday carlot. Lean hog index for 8/31 is at $83.01 down 33 with a 
projected two-day index of $82.66 per cwt, down 35. 

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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