DTN Midday Livestock Comments 10/19 11:41

DTN Midday Livestock Comments 10/19 11:41 Cattle Futures Extend Gains With Triple-Digit Rallies Follow-through buying continues to flood into the cattle futures market with both live cattle and feeder cattle contracts holding over $2 per cwt gains in nearby futures. The expectation that strong fundamental support will continue to be seen in the market could help to keep buyers moving back into the market could keep prices moving higher in the near future. By Rick Kment DTN Analyst GENERAL COMMENTS: Triple-digit gains are holding through the cattle complex with buyers quickly focusing on firming market fundamentals and the ability for cash markets to escalate higher over the last couple of weeks. Lean hog futures are mixed in a narrow range, with December futures narrow gains near midday based on support in cattle contracts. Corn prices are lower in light trade. December corn futures are 3 cents per bushel lower. Stock markets are mixed in light trade. The Dow Jones is 17 points lower while Nasdaq is up 10 points. LIVE CATTLE: Nearby buyer support has quickly redeveloped Monday morning pushing October through February futures $2 to $2.50 per cwt higher during late morning trade. Although these gains have fallen slightly from morning highs, the ability to stay at these price levels continues to indicate that continued market support is seen and buyers develop to return to the market. Deferred support is building under the market, although at a slower pace but manageable pace. Cash markets are still undeveloped for the week and likely to remain that way for most of the week. Show lists are mixed. Bids may not be seen until near midweek although asking prices are starting to be seen around $140 to $145 per cwt. Beef cut-outs at midday are higher, $0.85 lower (select) and up $1.44 per cwt (choice) with light movement of 74 total loads reported (34 loads of choice cuts, 11 loads of select cuts, no loads of trimmings, 29 loads of ground beef). FEEDER CATTLE: Strong buyer support continues to be seen through the feeder cattle market Monday with nearby futures holding gains of $2 to $3 per cwt as buyers are holding gains in October through April futures. This is helping to spark increased interest in not only commercial buyer support but expectation of long term support through late 2016 contracts, helping to build long term investment activity. The potential development of longer-term cash market and boxed beef support through the next couple of months could bring even further support into both live cattle and feeder cattle markets through the end of the year. LEAN HOGS: Firm buyer support has redeveloped through late morning as December lean hog futures has pushed higher with 90-cent-per-cwt gains as traders started to draw support from the support seen in neighboring cattle futures. Deferred lean hog futures continue to drag other nearby markets lower, which could continue to remain under pressure through the rest of the session based on lackluster results in cash market moves early in the week. Cash prices are lower on the National Direct morning cash hog report. The weighted average price fell $0.24 per cwt to $67.75 per cwt with the range from $64.00 to $70.00 per cwt on 2,790 head reported sold. Cash prices are unreported due to confidentiality on the Iowa Minnesota Direct morning cash hog report. The National Pork Plant Report reported 151 loads selling with prices up $1.42 per cwt. Lean hog index for 10/15 is at $74.96 up 0.02, with a projected two-day index of $74.59, down 0.37. Rick Kment can be reached at rick.kment@dtn.com (BAS) Copyright 2015 DTN/The Progressive Farmer. All rights reserved.