DTN Midday Livestock Comments 12/23 12:10

DTN Midday Livestock Comments 12/23 12:10 December Live Cattle Futures Hold Limit Gains Limit gains redevelop in live cattle futures once again as aggressive buyer support floods cattle markets. The focus of higher trade and aggressive beef values have created even more momentum through the cattle market Wednesday morning. By Rick Kment DTN Analyst GENERAL COMMENTS: Sharp gains in the live cattle futures market have continued to drive buyers back into the complex through the holiday week. The support continues to help bring increased support to higher cash cattle prices midweek. Hog futures are gaining momentum based on the aggressive moves in the cattle market. Corn prices are lower in light trade. March corn futures are 1 cent lower. Stock markets are higher in light trade. The Dow Jones is 140 points higher while Nasdaq is up 32 points. LIVE CATTLE: Aggressive buyer support has flooded the live cattle futures market once again pushing front month live cattle futures market back to limit gains of $3 per cwt. The rest of the complex is following close behind as traders push the aggressive market shift higher through the lightly traded holiday week. Any lack of market pressure is absent at this point with cash and boxed beef values moving higher through the week giving an indication of even quickly market recovery than previously expected. Cash cattle markets have not seen any trade yet Wednesday morning, but bids and asking prices have redeveloped following light trade Tuesday. Bids are seen at $124 in the South and $187 to $190 per cwt in the North. With asking prices well above that level, but still somewhat undefined. It is expected that trade will develop sometime through the afternoon with both sides desiring to wrap up business for the week before the end of the day. Beef cut-outs at midday are higher, $3.52 higher (select) and up $2.80 per cwt (choice) with active movement of 109 total loads reported (58 loads of choice cuts, 25 loads of select cuts, zero loads of trimmings, 26 loads of ground beef). FEEDER CATTLE: Nearby feeder cattle futures have stayed away from limit higher gains for most of the morning, but prices have not been far away from that level with prices seen from $4 to $4.20 per cwt higher in nearby contracts at midday. The aggressive limit gains in December live cattle futures and higher cash cattle trade has spurred strong buyer support across the entire complex. It is uncertain just how active trade volume is through the morning, but the increased buyer support appears to be holding nicely through the week, and may help to spark additional pre-holiday buying activity back into the complex. LEAN HOGS: Aggressive buyer support across the cattle market once again has helped to draw light to moderate buyer support back into nearby contract months. Triple-digit gains are seen across all 2016 contracts despite pressure in cash markets through the morning as traders focus on firm spillover support in the cattle market. The expectation is that additional buyer interest may continue to develop over the next week which could bring additional stability to the market. Cash prices are lower on the National Direct morning cash hog report. The weighted average price fell $0.88 per cwt to $46.91 per cwt with the range from $46.06 to $46.91 per cwt on 4,320 head reported sold. Cash prices are unreported due to confidentiality on the Iowa Minnesota Direct morning cash hog report. The National Pork Plant Report reported 211 loads selling with prices down $0.71 per cwt. Lean hog index for 12/21 is at $54.41 down 0.24, with a projected two-day index of $54.25, down 0.16. Rick Kment can be reached at rick.kment@dtn.com (BAS) Copyright 2015 DTN/The Progressive Farmer. All rights reserved.