DTN Midday Livestock Comments 11/18 11:59

DTN Midday Livestock Comments 11/18 11:59 Cattle Futures Add Sharp Gains Midweek Strong limit higher gains midmorning Wednesday help to draw additional strong buyer support into the cattle market. This is sustaining additional market activity in both live cattle and feeder cattle trade. Lean hog futures are holding moderate to strong gains based firm buyer support seen Tuesday. By Rick Kment DTN Analyst GENERAL COMMENTS: Strong gains have redeveloped through cattle futures midweek helping to push triple-digit gains in both live cattle and feeder cattle contracts. The ability to not only restate but hold this support through the trading session is sparking additional widespread interest in the market, and could increase additional end-of-week buyer strength. Corn prices are lower in light trade. December corn futures are 2 cents lower in front-month December contracts. Stock markets are higher in light trade. The Dow Jones is 34 points higher while Nasdaq is up 45 points. LIVE CATTLE: Limit-higher trade developed midmorning in nearby live cattle futures, but was unable to hold through midday as buyers slowly backed away from $3 per cwt gains. But the aggressive triple-digit gains continue to create strong momentum through the cattle complex and move prices well off of support levels of $127.60 per cwt. If December futures can put an anchor at $130 per cwt through the week in order to build buyer support off of this level, trader interest is likely to redevelop. Cash cattle activity is extremely quiet with no bids seen through either the North or the South through the morning. It is likely going to be Thursday of Friday before active trade is seen as both sides are waiting to see where futures prices will go from here following the morning market rally. Asking prices are redeveloping in the South at $130 to $133. Beef cut-outs at midday are mixed, $0.64 higher (select) and down $0.36 per cwt (choice) with moderate movement of 98 total loads reported (46 loads of choice cuts, 19 loads of select cuts, 10 loads of trimmings, 22 loads of ground beef). FEEDER CATTLE: Strong midweek buying has flooded back into feeder cattle futures late Wednesday morning with all but November contracts posting gains well above $3 per cwt. The aggressive support through the complex is following the buyer interest in the live cattle market as traders are quickly stepping back into the market following the turn lower over the last couple weeks. Fundamental support still remains uncertain, but at this point, most traders feel that very little downward market risk exists given the current market supply and potential for demand support through next spring and summer. LEAN HOGS: Moderate gains have continued to hold Wednesday morning, although very little significant direction has been seen through the complex. The strong push higher at midday in the cattle complex has yet to show any sign of spill over support in the hog complex. December futures are holding at $55 per cwt with a 82 cent per cwt gain, while other nearby contracts are posting scattered price direction through the morning with little uniformity. Cash prices unreported at this time. The National Pork Plant Report reported 241 loads selling with prices added $1.24 per cwt. Lean hog index for 11/16 is at $56.49 down 0.49, with a projected two-day index of $56.04, down 0.45. Rick Kment can be reached at rick.kment@dtn.com (BAS) Copyright 2015 DTN/The Progressive Farmer. All rights reserved.