DTN Midday Livestock Comments 01/21 12:08

DTN Midday Livestock Comments 01/21 12:08 Limit Gains Hold in Cattle Trade Strong commercial and investment support flooded the cattle market Thursday, pushing prices limit higher in early trade. This created an even wider price swing given the losses that developed midweek and recent inconsistency through the complex. By Rick Kment DTN Analyst GENERAL COMMENTS: Live cattle and feeder cattle futures quickly regained market support Thursday morning with traders looking for buyer support based on a sharp reaction to losses midweek. This has pushed contracts limit higher despite light trade volume. Corn prices are lower. March corn futures are 1 cent lower. Stock markets are higher in active trade. The Dow Jones is 203 points higher while Nasdaq is up 43 points. LIVE CATTLE: Nearby live cattle futures are holding $3 per cwt gains as traders are looking for additional market support. This could help to draw increased buyer interest into the market Friday given these markets close at these price levels. The underlying support in the market is helping to bring some support back to the market and could help bring additional volume into nearby contract months. Cash cattle trade is quiet Thursday morning with feeders unwilling to sell at prices seen Wednesday following the rally in futures market. Bids are developing through the morning at $127 to $128 in the South and $202 in the North, but unwilling to get any attention. It is likely going to be Friday before active trade develops. Beef cut-outs at midday are mixed, $0.90 higher (select) and down $1.14 per cwt (choice) with light movement of 72 total loads reported (40 loads of choice cuts, 17 loads of select cuts, 5 loads of trimmings, 10 loads of ground beef). FEEDER CATTLE: Feeder cattle futures have moved to and continue to hold limit gains at midday based on buyer support flooding into the market following the aggressive market pressure which developed midweek. The back and forth market shifts seen through the week has created some significant volatility which may continue over the next several days. LEAN HOGS: Firm gains have developed through lean hog trade as the aggressive limit gains in cattle futures have trickled over to the lean hog market. This has helped to draw additional support to the entire lean hog complex, but the buyer interest has been spill over support even though fundamental support has remained strong through the last several trading sessions. April futures are leading the market higher with a $1.70 per cwt rally, at midday. Cash prices are lower on the National Direct morning cash hog report. The weighted average price fell $0.40 per cwt to $54.36 per cwt with the range from $53.52 to $56.50 per cwt on 3,841 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 195 loads selling with prices down $0.30 per cwt. Lean hog index for 1/19 is at $56.77 up 0.52, with a projected two-day index of $57.20, up 0.43. Rick Kment can be reached at rick.kment@dtn.com (ES) Copyright 2016 DTN/The Progressive Farmer. All rights reserved.