DTN Midday Livestock Comments 10/28 12:22

DTN Midday Livestock Comments 10/28 12:22 Limit Higher Trade Holds in Cattle Futures Cattle futures surge higher with nearby contracts limited by daily trading limits. A close at these prices will create expanded trading limits in both feeder cattle and live cattle contracts Thursday. By Rick Kment DTN Analyst GENERAL COMMENTS: Gains in nearby live and feeder cattle contracts are up against daily trading limits, as aggressive buyer support has flooded back into the complex. This support continues to hold through the entire cattle complex. Hog markets remain slightly lower in light trade, as most of the emphasis is being placed in cattle trade. Corn prices are lower in light trade. December corn futures are 3 cents per bushel lower. Stock markets are higher in light trade. The Dow Jones is 98 points higher while Nasdaq is up 33 points. LIVE CATTLE: Live cattle futures have moved swiftly higher in all contract months with December and February contracts locked into limit higher gains of $3 per cwt rallies while most other nearby contracts are flirting with similar levels. These levels will create expanded limits Thursday if markets will be able to settle at higher limits at the end of the trading session. Traders focusing on firming beef values and the ability to aggressively move back into the market following early week liquidation sparked widespread market movement Wednesday morning. Cash cattle markets remain relatively quiet Wednesday following light trade in the South at steady money with last week. The firm support of beef values and futures trade should keep feedlot managers asking prices aggressive through the last half of the week. The short bought status of packers created the expectation that additional interest stepped back into the market. A few bids are seen early in the day in the North at $208. Beef cut-outs at midday are higher, $0.83 higher (select) and up $2.35 per cwt (choice) with moderate movement of 102 total loads reported (45 loads of choice cuts, 26 loads of select cuts, 9 loads of trimmings, 23 loads of ground beef). FEEDER CATTLE: Buyer support has quickly stepped into the cattle complex Wednesday, and the support in the complex has come with passion as November and January futures have held limit-higher gains through the entire morning. The support through the rest of the market seems to be trying to keep up with nearby trade, but lack of volume is keeping prices slightly under limit gains at this point. LEAN HOGS: Moderate losses continue to develop through the lean hog futures complex as traders continue to focus on the seasonal pressure in the pork complex as well as continued bearishness of cash hog markets and inability to draw traders back to any nearby or deferred contract at this point. December contracts are holding narrowest losses, but still slipping nearly 50 cents per cwt, at $60.50 per cwt at midday. Cash prices are lower on the National Direct morning cash hog report. The weighted average price fell $2.01 per cwt to $67.51 per cwt with the range from $61.00 to $65.40 per cwt on 1,815 head reported sold. Cash prices are lower on the Iowa Minnesota Direct morning cash hog report. The weighted average price fell $1.66 per cwt to $64.68 per cwt with the range from $61.00 to $65.40 per cwt on 1,280 head reported sold. The National Pork Plant Report reported 288 loads selling with prices up $0.36 per cwt. Lean hog index for 10/23 is at $73.63 down 0.49, with a projected two-day index of $73.29, down 0.34. Rick Kment can be reached at rick.kment@dtn.com (BAS) Copyright 2015 DTN/The Progressive Farmer. All rights reserved.