DTN Midday Livestock Comments 12/24 11:38

DTN Midday Livestock Comments 12/24 11:38 Live Cattle Futures Rally Late Thursday Morning Late-morning buying pushed live cattle futures higher Thursday. Markets will reopen Monday. By Rick Kment DTN Analyst GENERAL COMMENTS: Live cattle futures moved higher at mid-session following early pressure as traders jumped into the complex before leaving for the Christmas holiday. Late-session buying has redeveloped in nearby live cattle contracts, pushing prices as much as $1.70 per cwt higher before the abbreviated trading session closes at noon. Lean hog futures remain firmly higher on late-week support. Corn prices are lower in light trade. March corn futures are 1 cent lower. Stock markets are mixed in light trade. The Dow Jones is 10 points lower while Nasdaq is up 14 points. LIVE CATTLE: Early losses in live cattle futures have been replaced by late-day buying support in nearbys. December live cattle futures are holding $1.70 per cwt gains. Markets will close early for the Christmas holiday. Trade has remained sluggish through the entire morning. Traders, however, continue to focus on the aggressive moves higher seen over the last week with the potential that additional market support could develop early next week. Cash cattle business is likely to be done for the week with a few bids in the North at $200 per cwt dressed basis. This is apparently where moderate to active trade was seen Wednesday. Asking prices are seen at $130 in the South and $202 to $204 in the North, but at this point it is likely that packers have enough cattle to get next week started. Beef cut-outs at midday are higher, $2.55 higher (select) and up $2.41 per cwt (choice) with light movement of 56 total loads reported (37 loads of choice cuts, 12 loads of select cuts, no loads of trimmings, 7 loads of ground beef). FEEDER CATTLE: The pullback in feeder cattle futures is expected to be nothing more than position-taking on the shortened trading session before the long holiday weekend. The aggressive price spike that has developed has the market ripe for position-taking across the entire complex, and with extremely light volume Thursday morning, markets have posted moderate to strong price softness. But this move lower means very little compared to the upward surge seem over the last week. January futures are trading $1.07 per cwt lower but have cut early losses by nearly half. LEAN HOGS: Firm pre-holiday gains continue to hold in lean hog futures contracts as traders focus the potential that long-term hog supplies are tightening even though overall current numbers remain burdensome. The pullback in cattle markets late in the week as traders take positions has created an opportunity for some buyers to slide into the hog complex in the abbreviated Christmas Eve trading session. February futures are holding above $58 per cwt, which is drawing additional firm support in all nearby contracts ahead of the long holiday weekend. Cash prices are lower on the National Direct morning cash hog report. The weighted average price fell $0.65 per cwt to $47.40 per cwt with the range from $45.00 to $49.00 per cwt on 2,830 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 $48.95 per cwt with the range from $48.25 to $49.00 per cwt on 950 head reported sold. The National Pork Plant Report reported 149 loads selling with prices up $0.63 per cwt. Lean hog index for 12/22 is at $54.25 down 0.16, with a projected two-day index of $54.01, down 0.24. Rick Kment can be reached at rick.kment@dtn.com (BAS) Copyright 2015 DTN/The Progressive Farmer. All rights reserved.