DTN Midday Livestock Comments 01/06 12:13

DTN Midday Livestock Comments 01/06 12:13 Feeder Cattle Futures Shift Higher at Midday Firm buying developed through feeder cattle futures midday Wednesday. This helped to spark additional interest through the entire cattle complex. Even though cattle prices have now fallen off of session highs at midday, the feeder cattle futures remain moderately higher, and well above the triple-digit losses seen during early trade. By Rick Kment DTN Analyst GENERAL COMMENTS: Cattle futures have moved higher as strong buyer interest has stepped back into the feeder cattle market. This interest seems to have slowed as contracts have quickly backed away from session highs. Live cattle futures are mixed in a moderate range, as buyers remain uncertain of just how much underlying support remains behind the recent aggressive market rally. Corn prices are higher in light trade. March corn futures are 0.5 cent higher. Stock markets are lower in light trade. The Dow Jones is 212 points lower while Nasdaq is down 46 points. LIVE CATTLE: Mixed trade is seen through the live cattle market as traders focus on the renewed buyer support through feeder cattle futures. Although at this point sustaining recent gains seen over the last two weeks remains more the focus of the trade than a continued long term market surge, the live cattle market may continue to bounce higher and lower through the rest of the afternoon as buyers try to find some renewed interest within the narrow price range. Cash cattle markets are still untraded, although a few bids are starting to be seen in Nebraska Wednesday morning at $210 to $212. This is near steady levels with last week. Active trade is likely to be pushed off until Thursday or Friday, and may be Friday at this point. Beef cut-outs at midday are higher, $4.22 higher (select) and up $4.47 per cwt (choice) with light movement of 93 total loads reported (41 loads of choice cuts, 14 loads of select cuts, 7 loads of trimmings, 30 loads of ground beef). FEEDER CATTLE: Strong losses seen early in the session have been allowed to evaporate at midday, with moderate gains replacing these market moves. The ability for beef prices to surge higher midweek in boxed beef values and the expectation of higher cash cattle trade once again is helping to draw additional late day support back to the complex. This resembles the trend seen in the market Monday, where sharp losses early in the session led to aggressive late-day buying activity. LEAN HOGS: Lean hog futures are mixed in narrow single digit range midweek. The hog complex has spent the morning directionless and seems to be content at this point with prices hovering from 7 cents lower to 7 cents higher in nearby contracts. More aggressive pressure is seen in deferred contracts, although very little trade volume is seen through the market. Cash prices are lower on the National Direct morning cash hog report. The weighted average price fell $1.03 per cwt to $48.16 per cwt with the range from $47.75 to $51.00 per cwt on 3,145 head reported sold. Cash prices are lower on the Iowa Minnesota Direct morning cash hog report. The weighted average price fell $0.20 per cwt to $50.41 per cwt with the range from $49.50 to $51.00 per cwt on 455 head reported sold. The National Pork Plant Report reported 377 loads selling with prices up $0.95 per cwt. Lean hog index for 1/4 is at $52.95 up 0.08, with a projected two-day index of $53.29, up 0.34. Rick Kment can be reached at rick.kment@dtn.com (BAS) Copyright 2016 DTN/The Progressive Farmer. All rights reserved.