DTN Midday Livestock Comments 01/05 12:08

DTN Midday Livestock Comments 01/05 12:08 Cattle Futures Mixed At Midday Early support in cattle markets have turned mixed as traders look for protection following the inability to draw additional buyer support back into the complex Tuesday morning. This may allow for additional softness through the end of the session Tuesday. By Rick Kment DTN Analyst GENERAL COMMENTS: Early buyer support has evaporated at midday allowing for mixed trade to develop in both live cattle and feeder cattle markets. Lean hog futures remain aggressively higher with triple-digit gains seen in all nearby contracts. Corn prices are higher in light trade. March corn futures are 1 cent higher. Stock markets are lower in light trade. The Dow Jones is 82 points lower while Nasdaq is down 22 points. LIVE CATTLE: Live cattle futures have moved lower in nearby contracts at midday after giving back early gains. The focus on strong boxed beef support still developing through the complex continues to limit late morning buyer interest. Trade may continue to wander in the current range. But if traders hold in this pattern, through the next week, strong prices from December lows will continue to keep buyers in the market. Cash cattle markets are still quiet with bids undeveloped. Asking prices are starting to slowly be talked about around $140 to $142 in the South although asking prices are still unseen in the North. It may easily be Thursday or Friday before active trade is seen. Beef cut-outs at midday are higher, $3.95 higher (select) and up $2.33 per cwt (choice) with light movement of 83 total loads reported (52 loads of choice cuts, 10 loads of select cuts, no loads of trimmings, 20 loads of ground beef). FEEDER CATTLE: Feeder cattle futures have bounced higher and lower after moving away from early gains Tuesday morning. Uncertainty in the complex is seen in deferred contracts as traders continue to focus on the potential for increased supply levels through the upcoming summer season. There may be some additional activity seen through the last hour of trade which could help to draw traders back into the market. But buyers may spark increased support to the market trade late in the week. LEAN HOGS: Sharp gains continue to hold through nearby lean hog futures contracts with front month February contracts leading the market higher with a $1.80 per cwt rally. The focus through the market has pushed additional buyer support into most contracts although the emphasis has been placed on nearby contract months with deferred futures holding light support. Cash prices are higher on the National Direct morning cash hog report. The weighted average price added $0.13 per cwt to $48.91 per cwt with the range from $47.75 to $51.00 per cwt on 5,141 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 219 loads selling with prices up $0.99 per cwt. Lean hog index for 12/31 is at $52.87 down 0.05, with a projected two-day index of $52.95, up 0.08. Rick Kment can be reached at rick.kment@dtn.com (BAS) Copyright 2016 DTN/The Progressive Farmer. All rights reserved.