DTN Midday Livestock Comments 02/03 12:11

DTN Midday Livestock Comments 02/03 12:11 Cattle Futures Retain Triple-Digit Gains Strong gains hold in nearby cattle futures as traders look for increased longer-term support and the ability to expand short-term market trends. By Rick Kment DTN Analyst GENERAL COMMENTS: Strong market gains have been seen in the cattle market with live cattle and feeder cattle futures holding triple-digit support based on strong commercial support redeveloping midweek. The ability to push front-month February live cattle futures above December highs has helped to spark widespread interest into the complex. Corn prices are lower. March corn futures are 2 cents lower. Stock markets are lower in active trade. The Dow Jones is 4 points lower while Nasdaq is down 48 points. LIVE CATTLE: Live cattle futures have posted strong midweek gains with nearby triple-digit gains holding. Morning gains have pushed front-month February futures above the December highs and traded above $137 per cwt for most of the morning. This has helped to spark additional buyer support through the entire complex. It is uncertain if there is enough buyer support left to hold these gains through the end of the session, or if prices will erode as they have earlier in the week as markets move closer to closing bell. Cash cattle markets are still dead quiet with no bids developing. Asking prices in the South remain at $142. Cleanup after the storm is going on, which seems to be the top priority, and may push most trade off until Friday at this point. Beef cut-outs at midday are mixed, $0.42 higher (select) and down $0.35 per cwt (choice) with light movement of 65 total loads reported (29 loads of choice cuts, 24 loads of select cuts, 4 loads of trimmings, 8 loads of ground beef). FEEDER CATTLE: Triple-digit gains are seen in all but October feeder cattle futures with the ability for aggressive nearby live cattle gains to put additional new life into commercial and investment buying activity during early February. This has helped to spark interest in renewed market support through the entire feeder cattle complex. LEAN HOGS: Light to moderate gains have redeveloped through lean hog futures as traders have focused on strong morning rallies seen through the entire cattle complex. The support in hog trade counters the aggressive triple-digit losses seen Tuesday, but still does not overshadow the weaker trend seen early in the week. Cash prices are lower on the National Direct morning cash hog report. The weighted average price fell $0.68 per cwt to $59.20 per cwt with the range from $59.18 to $60.47 per cwt on 2,774 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 253 loads selling with prices down $1.13 per cwt. Lean hog index for 2/1 is at $62.51 up 0.64, with a projected two-day index of $63.30, up 0.79. Rick Kment can be reached at rick.kment@dtn.com (ES) Copyright 2016 DTN/The Progressive Farmer. All rights reserved.