DTN Midday Livestock Comments 01/04 12:08

DTN Midday Livestock Comments 01/04 12:08 Cattle Futures Rally Back Monday Morning Morning trade turned aggressive losses into moderate to strong gains across the cattle complex. The focus through the complex continues to be split between potential moves in beef markets and the direction of outside markets which has stock markets under significant pressure. By Rick Kment DTN Analyst GENERAL COMMENTS: Cattle trade have gained significant ground Monday morning following sharp early losses. This is creating the distance between outside markets and potential support redeveloping in the livestock complex during early January. Corn prices are lower in light trade. March corn futures are 7 cents lower. Stock markets are lower in active trade. The Dow Jones is 375 points lower while Nasdaq is down 121 points. LIVE CATTLE: Live cattle futures are mixed at midday in an extremely narrow range, although the tone of the market seems to be much improved from the sharp triple digit losses seen at opening bell. This is helping to create some late day stability in the market, partially based on firm beef values, which is offsetting the losses in outside markets. Cash cattle activity remains quiet with bids still undeveloped and likely to remain that way until potentially midweek. There will be a lot of focus on pushing the envelope on higher cash cattle trade, but a lot will ride on outside markets and the ability for futures markets to sustain current support. Beef cut-outs at midday are higher, $4.71 higher (select) and up $4.07 per cwt (choice) with light movement of 79 total loads reported (38 loads of choice cuts, 11 loads of select cuts, 9 loads of trimmings, 20 loads of ground beef). FEEDER CATTLE: The turnaround in the feeder cattle futures on the first trading session of 2016 has created some extremely wild shifts through the morning with contracts posting $1 per gains at midday. The market started out the session with losses of nearly $3 per cwt, based on outside market pressure. There seems to be some additional buyer support remaining at midday, but prices may move in a wide pattern over the next several days as outside markets may still not have found a balance. LEAN HOGS: Cash hog futures are mixed to mostly lower as sharp early losses have allowed for additional softness to hold through the complex even though gains have developed in cattle trade. The focus on premiums in lean hog futures compared to cash hog prices continues to limit additional market direction, but this may continue to keep traders from moving quickly from current positions through the first week in January. Cash prices unreported at this time. The National Pork Plant Report reported 203 loads selling with prices up $0.23 per cwt. Lean hog index for 12/30 is at $52.92 down 0.05, with a projected two-day index of $52.87, down 0.05. Rick Kment can be reached at rick.kment@dtn.com (BAS) Copyright 2016 DTN/The Progressive Farmer. All rights reserved.