DTN Midday Livestock Comments 05/26 11:50 Firm gains quickly moved into the market late Thursday morning as June live cattle posted triple-digit gains. The renewed buyer support is based on sluggish market activity, more than changing fundamentals developing across the complex. By Rick Kment DTN Analyst GENERAL COMMENTS: Trade volume remains light to moderate across livestock futures as gains have quickly moved back into the complex. This has created a shift from the early trade direction, which pushed markets lower on fundamental market weakness in the cattle complex. Traders in the hog complex have moved away from the narrow pressure based on firming cash hog support, with gains developing in most nearby contracts. Corn prices are lower in light trade. July corn futures are 1 cent lower. Stock markets are higher in light trade. The Dow Jones is 76 points higher while Nasdaq is up 45 points. LIVE CATTLE: Moderate-to-strong buyer support has quickly moved back into the cattle complex with front-month June futures posting firm triple-digit gains. This significant midday adjustment in livestock markets has little to do with market fundamentals, which still remain weak due to lower cash markets and mixed beef values but lack of overall market activity before the long holiday weekend. The shift from moderate pressure early through the session continues to create adjustments as the day continues. Cash cattle are untraded Thursday morning following light-to-moderate activity in both areas midweek. It is expected that movement in the South will be adequate for the week, but additional trade will be needed to be done through the North. Bids are developing in the North with prices seen at $130 to $132 live and $208 to $210 dressed basis. Asking prices on cattle left on show lists are $134 and higher live basis and $210 and higher. Cash business done earlier in the week are generally $2 per cwt lower in the South and $5 per cwt lower in the North. Beef cut-outs at midday are mixed, $0.43 lower (select) and up $0.07 per cwt (choice) with light movement of 59 total loads reported (22 loads of choice cuts, 25 loads of select cuts, 8 loads of trimmings, 5 loads of ground beef). FEEDER CATTLE: Despite firm selling pressure early in the session, strong triple-digit gains quickly moved into the feeder cattle market, changing the course of market direction at midday. August futures have moved above $150 per cwt with prices seeing more than $1.50-per-cwt gains as traders are quickly adjusting to previous market losses and trying to adjust to market losses seen early in the week. An attempt to make an end-of-the-week rally and shift prices higher would not only help to sustain weekly chart prices, but would also mean adjusting monthly charts heading into the summer months. LEAN HOGS: Following the lackluster interest seen through the morning, buyer support has moved into the lean hog complex as cash support has developed during the morning reports. This has moved all nearby futures contracts higher and sparked increased underlying commercial support through the complex. A fundamental move higher through the end of the month could bring increased technical and fundamental interest back into the market, which may bring even more upward market potential during the summer months. June futures are leading the complex higher, testing the market with prices reaching at $80.50 per cwt at midday. Cash prices are higher on the National Direct morning cash hog report. The weighted average price added $0.15 at $70.46 per cwt with the range from $65.00 to $72.00 on 5,416 head reported sold. Cash prices are higher on the Iowa Minnesota Direct morning cash hog report. The weighted average price added $0.46 at $71.37 per cwt with the range from $65.00 to $72.00 on 1,206 head reported sold. The National Pork Plant Report reported 100 loads selling with prices adding $0.92 per cwt. Lean hog index for 5/23 is at $76.07 up $0.13 with a projected two-day index of $76.25 up $0.18. Rick Kment can be reached at email@example.com (ES) Copyright 2017 DTN/The Progressive Farmer. All rights reserved.