DTN Midday Livestock Comments 10/16 12:20

DTN Midday Livestock Comments 10/16 12:20 Firm Gains Redevelop in Nearby Cattle Markets Firm gains have quickly developed through morning trade in both live cattle and feeder cattle futures. This has sparked buyer support through the entire complex. By Rick Kment DTN Analyst GENERAL COMMENTS: Strong buyer support has quickly redeveloped through cattle trade at midday. This has helped to push nearby live cattle and feeder cattle markets to triple digit gains. Strong losses continue to hold in nearby lean hog futures with concern of fundamental weakness keeping traders cautious about weaker cash markets. Corn prices are lower in light trade. December corn futures are 2 cents per bushel lower. Stock markets are higher in light trade. The Dow Jones is 6 points higher while Nasdaq is up 3 points. LIVE CATTLE: October and December live cattle futures have quickly rebounded from early morning losses with all nearby contracts posting strong triple-digit gains. The strongest gains are seen in front month October futures, holding a $1.62 per cwt gain, at $134.60 per cwt. This support is creating some underlying support going into the weekend despite the softness in beef values, and creating some expectations buyers may remain willing to step back into the market early next week given the moves through the first half of the month of October. Cash markets remain dead in the water, with bids still seen far from asking prices, but it is only a matter of time until activity will develop. Prices will likely be higher in order for packers to get access to needed cattle to fill placement needs, but just how much higher will be the question of the afternoon. Bids of $125 in the South and $202 in the North are still being turned away, and likely to not get much attention before the end of the day. Beef cut-outs at midday are lower, $1.06 lower (select) and down $0.01 per cwt (choice) with light movement of 77 total loads reported (51 loads of choice cuts, 16 loads of select cuts, no loads of trimmings, 10 loads of ground beef). FEEDER CATTLE: Firm gains have quickly developed through the feeder cattle futures with triple-digit gains holding in nearby contracts. Despite gains losses in boxed beef values, the ability to draw buyer support back to market support into the market at the end of the week could help to spark some additional momentum through the second half of October. LEAN HOGS: Sharp triple-digit losses are holding through the December lean hog futures contracts as the focus on cash market pressure seems to be creating some underlying concern that eroding market weakness could be adding to the overall softness of the entire market. Cash prices are lower on the National Direct morning cash hog report. The weighted average price fell $1.02 per cwt to $68.78 per cwt with the range from $64.00 to $71.50 per cwt on 8,890 head reported sold. Cash prices are lower on the Iowa Minnesota Direct morning cash hog report. The weighted average price fell $1.98 per cwt to $68.97 per cwt with the range from $66.00 to $71.50 per cwt on 7,150 head reported sold. The National Pork Plant Report reported 151 loads selling with prices up $1.42 per cwt. Lean hog index for 10/14 is at $74.98 up 0.04, with a projected two-day index of $74.96, down 0.02. Rick Kment can be reached at rick.kment@dtn.com (BAS) Copyright 2015 DTN/The Progressive Farmer. All rights reserved.