DTN Midday Livestock Comments 12/10 12:17

DTN Midday Livestock Comments 12/10 12:17 Triple-Digit Gains Hold in Cattle Futures Cattle markets rebound Thursday as short covering activity has developed in both live cattle and feeder cattle markets. The focus on squaring positions before the end of the week is helping to spark increased market activity. By Rick Kment DTN Analyst GENERAL COMMENTS: Cattle futures have quickly jumped back into the market with triple-digit gains moving quickly back into the market. Feeder cattle futures are leading the complex at midday although it is uncertain just how much additional volume will be seen through the end of the session. Lean hog futures trade is mixed in a narrow range. Corn prices are higher in light trade. December corn futures are 6 cents higher in front month December contracts. Stock markets are higher in light trade. The Dow Jones is 108 points higher while Nasdaq is up 29 points. LIVE CATTLE: Buyer activity has moved back into the live cattle market Thursday morning as traders quickly jumped onboard following the aggressive market turn lower over the last several trading sessions. This one-day move higher is not enough to change the tone of the bearish market, but it could help to bring some market stability to traders who seem to have given up hope over the last couple of weeks. Cash cattle activity remains quiet Thursday morning following business earlier in the week sharply lower from last week. Prices are seen $5 to $6 per cwt lower from last week, which is enough to set the tone for the market, and likely sum up trade for the week. Beef cut-outs at midday are higher, $0.08 higher (select) and up $0.11 per cwt (choice) with light movement of 73 total loads reported (45 loads of choice cuts, 18 loads of select cuts, 1 load of trimmings, 9 loads of ground beef). FEEDER CATTLE: Strong triple-digit gains have quickly developed through feeder cattle futures as buyers moved back into the complex trying to shift back into the market. Nearby futures are holding gains of $2 per cwt with January holding a $2.35-per-cwt support, while deferred futures are holding slightly less gains. LEAN HOGS: Following narrow losses through most of the morning, lean hog futures are trading mixed in choppy trade at midday. The pullback in December contracts appear to be position taking focused on the renewed buyer interest in the cattle market, although the rest of the hog complex remains mixed within a narrow complex. Cash prices are lower on the National Direct morning cash hog report. The weighted average price fell $0.75 per cwt to $50.88 per cwt with the range from $46.50 to $52.50 per cwt on 4,662 head reported sold. Cash prices are lower on the Iowa Minnesota Direct morning cash hog report. The weighted average price fell $0.14 per cwt to $52.22 per cwt with the range from $46.50 to $52.50 per cwt on 2,099 head reported sold. The National Pork Plant Report reported 165 loads selling with prices up $1.65 per cwt. Lean hog index for 12/7 is at $56.32 up 0.10, with a projected two-day index of $56.66, up 0.34. Rick Kment can be reached at rick.kment@dtn.com (BAS) Copyright 2015 DTN/The Progressive Farmer. All rights reserved.