DTN Midday Livestock Comments 02/16 12:17

DTN Midday Livestock Comments 02/16 12:17 Triple-Digit Gains Encompass Cattle Trade The lack of direction seen early Tuesday morning in livestock trade was quickly replaced by sharp gains in both live cattle and feeder cattle futures. Widespread support in outside markets has sparked increased market interest early in the week. By Rick Kment DTN Analyst GENERAL COMMENTS: Cattle futures have quickly changed course during late morning, moving from narrowly mixed trade early Tuesday to strong gains midday. The support focuses on spillover outside market gains which is increasing buyer activity into the complex. This may continue to draw prices higher into front month February futures, although the ability to hold prices at these higher levels into closing bell will remain important. Corn prices are higher. March corn futures are 2 cents higher. Stock markets are higher in active trade. The Dow Jones is 186 points higher while Nasdaq is up 83 points. LIVE CATTLE: Following quiet trade through most of the morning, aggressive triple digit price support flooded into nearby live cattle futures. This helped to push front month futures nearly $2 per cwt higher as traders focused on the ability to draw more focus on buyer support through outside markets. Cash cattle markets are quiet with a few bids developing in the South at $131 per cwt, but it is likely that active trade will be pushed off until the end of the week. Show lists are smaller across the board, but still are not expected to draw any additional interest back into the market any time soon. Beef cut-outs at midday are lower, $0.79 lower (select) and down $0.13 per cwt (choice) with light movement of 52 total loads reported (25 loads of choice cuts, 13 loads of select cuts, no loads of trimmings, 14 loads of ground beef). FEEDER CATTLE: Triple digit gains have developed through the cattle markets with nearby feeder cattle futures holding strong gains following very little market activity through most of the morning. The spark that created additional market activity has been driven by outside market activity Tuesday morning, and primarily based in front month live cattle trade. LEAN HOGS: Lackluster activity has continued through the morning across the lean hog complex as April lean hog futures have taken over as front month contracts. This has drawn light buyer support has helped to draw interest back into the front door with narrow gains trying to cover narrow to moderate pressure in deferred contracts. Cash prices are higher on the National Direct morning cash hog report. The weighted average price added $0.11 per cwt to $62.17 per cwt with the range from $61.51 to $64.50 per cwt on 3,236 head reported sold. Cash prices lower on the Iowa Minnesota Direct morning cash hog report. The weighted average price fell $0.43 per cwt to $63.92 per cwt with the range from $62.50 to $64.50 per cwt on 875 head reported sold. The National Pork Plant Report reported 175 loads selling with prices down $0.76 per cwt. Lean hog index for 2/12 is at $65.89 down 0.02, with a projected two-day index of $65.92, up 0.03. Rick Kment can be reached at rick.kment@dtn.com (ES) Copyright 2016 DTN/The Progressive Farmer. All rights reserved.