DTN Midday Livestock Comments 01/22 12:07

DTN Midday Livestock Comments 01/22 12:07 Live Cattle Futures Soften At Midday Live cattle futures have backed away from early buyer support at midday as trade volume has slowed. Feeder cattle gains have continued to hold triple-digit support, although volume is moderate at best. By Rick Kment DTN Analyst GENERAL COMMENTS: Feeder cattle futures remain aggressively higher, even though lack of follow through buyer support has pulled contracts off of session highs. Live cattle markets are moderately higher as traders look for additional direction from cash markets as well as upcoming cattle on feed report. Corn prices are higher. March corn futures are 2 cent lower. Stock markets are higher in active trade. The Dow Jones is 144 points higher while Nasdaq is up 95 points. LIVE CATTLE: Nearby live cattle futures are holding strong $1 per cwt gains, although current gains are well off of session highs, as early buyer activity has quickly been met, and left a vacuum under the market. The development of cash markets, monthly cold storage reports, and cattle on feed reports, are all having slight impacts on live cattle futures, although trade remains focused on the light commercial interest trickling into the market. Cash cattle trade is quiet Friday morning with packers and feeders at a standstill. There are a few bids at $128 in the south, but it is expected that most trade will be delayed until after the cattle on feed report. Beef cut-outs at midday are lower, $2.10 lower (select) and down $2.24 per cwt (choice) with light movement of 73 total loads reported (34 loads of choice cuts, 14 loads of select cuts, 13 loads of trimmings, 13 loads of ground beef). FEEDER CATTLE: Feeder cattle futures continue to hold strong gains with triple digit support seen in all but January contracts as March futures are holding a $2.80 per cwt gains. Buyers are looking for additional direction heading into the end of the day with cash markets still needing to take place, while cattle on feed reports will play a big part of end-of-week market movements. This may spark some end-of-day positioning, which may develop some increased volatility early next week. LEAN HOGS: Lean hog futures remain choppy in moderate trade with the overall lack of direction continuing through the market as feeder cattle markets hold early gains, which buyer support seems to be trickling away from the complex late in the session. Cash prices are lower on the National Direct morning cash hog report. The weighted average price fell $0.67 per cwt to $54.70 per cwt with the range from $49.00 to $56.50 per cwt on 2,853 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 153 loads selling with prices up $0.50 per cwt. Lean hog index for 1/20 is at $57.20 up 0.43, with a projected two-day index of $57.84, up 0.64. Rick Kment can be reached at rick.kment@dtn.com (ES) Copyright 2016 DTN/The Progressive Farmer. All rights reserved.