DTN Midday Livestock Comments 01/13 12:08

DTN Midday Livestock Comments 01/13 12:08 Nearby Cattle Futures Regain Early Support at Midday Buyer activity has redeveloped in the live cattle and feeder cattle markets with the focus on shifting prices back from midmorning losses which developed as buyers stepped away from the market. Lean hog futures remain under light pressure. By Rick Kment DTN Analyst GENERAL COMMENTS: Livestock futures appear to be searching for support Wednesday morning in from both fundamental and technical indicators, but so far, it seems that markets are content to bounce around in a moderate range as trades step in and out of the market through the morning. Cattle futures have regained a portion of the early support, but there still remains uncertainty as to just how much underlying buyer activity remains under this activity. Lean hog futures are trading lower in narrow ranges. Corn prices are higher in light trade. March corn futures are 1 cents higher. Stock markets are lower in light trade. The Dow Jones is 120 points lower while Nasdaq is down 57 points. LIVE CATTLE: Live cattle futures have bounced higher and lower through the morning with traders looking for a sense of stability following the choppy market shifts which started to develop earlier in the week. There may continue to be some uncertainty seen in the complex through the rest of the session, although buyer support has slowly developed in spot February contracts with a 60-cent-per barrel gain holding at midday. Cash cattle markets are generally quiet Wednesday morning with a few bids developing through the morning. Bids are seen at $133 in the South and $209 in the North. This will not likely get much attention at this point, but keeps the ball rolling from light to moderate trade that has trickled into the market through the first couple days this week. Asking prices are seen at $136 to $138 live basis and $215 and higher dressed, which may push active trade to the end of the week. Beef cut-outs at midday are higher, $1.02 higher (select) and up $0.35 per cwt (choice) with light movement of 91 total loads reported (38 loads of choice cuts, 21 loads of select cuts, no loads of trimmings, 32 loads of ground beef). FEEDER CATTLE: Feeder cattle futures have bounced back from midmorning losses as buyer activity has stepped back into the complex at midday. There is very little market activity seen in the complex at this point, and the ability to draw additional players to the table has been a challenge through the morning. Spot January futures are holding 87 cent gains at midday, but still significantly well below early market support seen early in the session. The lack of activity developing during the session could keep prices wandering in a wide range through the rest of the session. LEAN HOGS: Early support seen in nearby February and April futures has been washed away by pressure in deferred contracts as traders have started to focus on the lack of direction for pork values on the morning report and uncertainty about just how strong cash markets may be following the higher market move through the next couple of weeks. The jury is still out on how the overall economic pullback in world stock markets will impact pork demand through the spring and summer markets. Losses have remained narrow, but the lack of follow through support in the market following Tuesday's strong gains is more of an issue than the actual price decline in the market. Cash prices are unreported due to confidentiality on the National Direct morning cash hog report. Cash prices are unreported due to confidentiality on the Iowa Minnesota Direct morning cash hog report. The National Pork Plant Report reported 337 loads selling with prices down $0.01 per cwt. Lean hog index for 1/11 is at $54.21 up 0.21, with a projected two-day index of $54.79, up 0.58. Rick Kment can be reached at rick.kment@dtn.com (ES) Copyright 2016 DTN/The Progressive Farmer. All rights reserved.