DTN Midday Livestock Comments 02/18 12:05

DTN Midday Livestock Comments 02/18 12:05 Moderate Gains Hold Across Cattle Complex Sluggish trade is seen through the cattle futures market Thursday morning, although moderate gains continue to hold. This is creating concerns in both the live cattle and feeder cattle market as traders are uncertain of the underlying buyer depth and ability to hold prices higher through the end of the session. Hog futures have slipped lower at midday based on cash market pressure. By Rick Kment DTN Analyst GENERAL COMMENTS: Cattle trade remains higher at midday following firm support through the morning. But the lack of buyer support able to gain momentum over the last couple of hours is creating uncertainty about the ability to hold this support through the end of the session. Hog futures have given back most of the early support following pressure in cash markets. Corn prices are lower. March corn futures are 1 cent lower. Stock markets are lower in light trade. The Dow Jones is 13 points lower while Nasdaq is down 26 points. LIVE CATTLE: Moderate gains have held through most of the morning across the live cattle complex, creating what seems to have been a rather lethargic shift in the overall cattle complex following the recent market surge. Even though gains continue to hold, and market prices keep pushing higher, there seems to be a sense of apathy along with this move higher as buyers seem to be unable to draw aggressive support. Nearby contracts are able to hold $1 per cwt gains, moderate gains of 40 to 50 cents is all that can be sustained in deferred contracts. This is creating some to wonder if this is enough support to hold prices higher through the end of the session. Cash cattle markets are starting to develop with packers showing bids of $128 to $129 in the South and $206 in the North. Activity may not still develop until sometime Friday, but asking prices still remain around $138 to $139 in the South and $215 and higher in the North. Beef cut-outs at midday are mixed, $2.37 higher (select) and down $0.91 per cwt (choice) with moderate movement of 95 total loads reported (58 loads of choice cuts, 12 loads of select cuts, 8 loads of trimmings, 17 loads of ground beef). FEEDER CATTLE: Firm buyer support continues to hold across feeder cattle trade, although there seems to be very little sense of long term market direction developing through the complex Thursday. Nearby contracts are holding $1 to $1.30 per cwt gains in light trade following the expectation that follow through buyer support will continue to slowly trickle into the market supported by previous market gains earlier in the week. But there is very little new market direction, which traders have to grab ahold of to propel them to move to the next level, or to aggressively draw additional buyers into the complex over the next couple of days. LEAN HOGS: Early gains which developed through the morning across the lean hog complex have eroded at midday following the lack of support in both cash hog markets after the release of morning reports and the lack of pork price support in the morning pork cutout report. This is not expected to create much bearish news for the overall lean hog complex, but it has caused most traders to slowly step back from the market at midday, as prices are hovering in a narrowly mixed range as prices are stuck in a single-digit price range. Cash prices are lower on the National Direct morning cash hog report. The weighted average price fell $1.77 per cwt to $61.51 per cwt with the range from $55.00 to $64.00 per cwt on 3,564 head reported sold. Cash prices lower on the Iowa Minnesota Direct morning cash hog report. The weighted average price fell $1.54 per cwt to $63.17 per cwt with the range from $62.50 to $64.00 per cwt on 849 head reported sold. The National Pork Plant Report reported 267 loads selling with prices up $0.22 per cwt. Lean hog index for 2/15 is at $65.92 down 0.03, with a projected two-day index of $66.08, up 0.16. Rick Kment can be reached at rick.kment@dtn.com (ES) Copyright 2016 DTN/The Progressive Farmer. All rights reserved.