DTN Midday Livestock Comments 12/21 12:09

DTN Midday Livestock Comments 12/21 12:09 Cattle Futures Hold Expanded Limits At Midday Expanded trading limits hold in cattle trade midday Monday with traders aggressively pushing prices higher following buyer support. This swift shift higher is dramatically changing the overall tone of the market over a matter of a couple of days, and may continue to spark wide-ranging shifts through the lightly traded holiday week. By John Harrington DTN Analyst GENERAL COMMENTS: Limit higher gains for the past two trading sessions in cattle futures have sparked an aggressive surge in cattle trade. The rocket-like projection seen in the market will easily create a new trading range once traders are able to bring some stability to the market. But when that stability will be is still yet to be seen. Hog markets are mixed in moderate ranges as prices are still looking for direction from outside markets and fundamentals. Corn prices are lower in light trade. March corn futures are 3 cents lower. Stock markets are higher in light trade. The Dow Jones is 45 points higher while Nasdaq is up 26 points. LIVE CATTLE: Nearby live cattle futures are holding aggressive gains at or near limit highs with February and April futures locked at $4.50 per cwt higher through the morning. This is creating additional market momentum through the entire complex which may bring even more buyer support as the week continues. Cash cattle markets are typically quiet for a Monday with show list distribution being done before the Christmas holiday. Showlists are expected to be steady to slightly smaller for the week, but this is not unexpected given the short week f trade with both sides trying to wrap up business early for the week. Beef cut-outs at midday are lower, $1.07 lower (select) and down $1.54 per cwt (choice) with light movement of 104 total loads reported (47 loads of choice cuts, 23 loads of select cuts, 10 load of trimmings, 24 loads of ground beef). FEEDER CATTLE: Feeder cattle futures have led the cattle complex higher through the morning with most contracts locked in expanded trading limits of $6.75 per cwt. This support continues to create some significant market support in the complex and put distance from the market lows, which could help to establish a new trading range through the month of January. Even though there will be very little trade being done at these price levels, the potential to draw more aggressive buying support to the market over the coming days due to the limit higher gains may spark some additional market interest through the entire complex. LEAN HOGS: Nearby lean hog futures have gained light buyer support Monday following the aggressive surge higher which has flooded into the cattle complex. This momentum shift in the complex seems to be driving the entire livestock complex at this point with little long term focus being placed on the overall fundamentals of the market. Front-month February futures are leading the complex higher with $1 per gains at midday, although the lack of support in deferred contracts will continue to limit additional support through the rest of the session, and may limit follow through buyer interest the rest of the session. Cash prices are lower on the National Direct morning cash hog report. The weighted average price fell $1.78 per cwt to $46.77 per cwt with the range from $44.00 to $49.00 per cwt on 2,699 head reported sold. Cash prices are unreported on the Iowa Minnesota Direct morning cash hog report. The National Pork Plant Report reported 232 loads selling with prices up $1.17 per cwt. Lean hog index for 12/17 is at $55.21 down 0.36, with a projected two-day index of $54.65, down 0.56. Rick Kment can be reached at rick.kment@dtn.com (BAS) Copyright 2015 DTN/The Progressive Farmer. All rights reserved.