DTN Midday Livestock Comments 11/17 12:16

DTN Midday Livestock Comments 11/17 12:16 Livestock Futures Rebound Tuesday Strong gains are seen Tuesday as traders react to the support seen following the early week sell-off. This is creating some kneejerk market reactions and could cause more market volatility through the rest of the week. By Rick Kment DTN Analyst GENERAL COMMENTS: Moderate to strong gains continue to hold across the livestock complex with triple digit gains seen in both cattle and hog futures at midday. Corn prices are steady to lower in light trade. December corn futures are unchanged. Stock markets are higher in light trade. The Dow Jones is 82 points higher while Nasdaq is up 28 points. LIVE CATTLE: Strong buyer interest quickly developed Tuesday morning and has moved in and out of futures markets, with prices generally higher through the morning. This has helped to sustain prices of triple-digit gains in most contracts at some point in the morning, although there is concern that buyer support may not be strong enough to carry the strong gains into closing bell. Cash cattle markets remain quiet, although a few bids are starting to develop in the North at $195 which is nearly $4 per cwt lower than last week's price level. Asking prices in the South are starting to be seen from $130 to $132 but so far no bids are developing in these areas. Beef cut-outs at midday are higher, $1.55 higher (select) and up $0.19 per cwt (choice) with light movement of 68 total loads reported (33 loads of choice cuts, 16 loads of select cuts, 2 loads of trimmings, 17 loads of ground beef). FEEDER CATTLE: Firm buyer support continues to hold through the morning Tuesday as traders rebound from early week losses. Triple-digit gains are holding although support has fallen off from initial market highs. The expectation that market support may continue to draw increased buyer interest could draw trade support into the complex late in the session. LEAN HOGS: Lean hog futures have pushed triple-digit gains in nearby futures through the entire morning with front-month December contracts trading between $2 and $2.80 per cwt through most of the morning. The expectation that traders are focusing rebounding prices above the $51.80 per cwt settlement prices seen Monday could help to create a strong building ground for renewed buyer support over the coming weeks and months. A close at or near limit-higher levels Tuesday could spark further bullish market support through the market later in the week. Cash prices are lower on the National Direct morning cash hog report. The weighted average price fell $0.93 per cwt to $49.42 per cwt with the range from $47.00 to $51.50 per cwt on 3,353 head reported sold. Cash prices are lower on the Iowa Minnesota Direct morning cash hog report. The weighted average price fell $0.23 per cwt to $50.91 per cwt with the range from $49.00 to $51.50 per cwt on 490 head reported sold. The National Pork Plant Report reported 208 loads selling with prices fell $2.08 per cwt. Lean hog index for 11/13 is at $56.98 down 0.95, with a projected two-day index of $56.49, down 0.49. Rick Kment can be reached at rick.kment@dtn.com (BAS) Copyright 2015 DTN/The Progressive Farmer. All rights reserved.