DTN Midday Livestock Comments 02/23 12:06

DTN Midday Livestock Comments 02/23 12:06 Follow-Through Buyer Support Develops in Cattle Trade Cattle trade continues to focus on the ability for front month February futures to test short term resistance levels of $137 per cwt. A close above February highs of $137.07 should help spark additional bullish market support through the complex, bringing additional momentum back into the complex. By Rick Kment DTN Analyst GENERAL COMMENTS: Cattle futures continue to regain buyer support as front month February live cattle futures continue to test resistance levels. The focus on stronger live cattle futures has helped to spark increased buyer support in the feeder cattle futures. Mixed lean hog futures have created challenges holding nearby gains despite the ability of posting strong gains in pork values. Corn prices are lower. March corn futures are 5 cents lower. Stock markets are lower in light trade. The Dow Jones is 156 points lower while Nasdaq is down 43 points. LIVE CATTLE: February live cattle futures are trading at and over the $137 per cwt price levels at several times through the morning which is helping to draw additional support back into the market. A close above $137.07 per cwt would break through short term resistance levels set on February 4th, and create additional potential bullish support which could spark additional buyer support through the rest of the week. Traders are looking for increased market support with aggressive beef gains seen in the morning boxed beef values as traders look for additional seasonal support to develop over the next couple of weeks. Cash cattle markets relatively quiet at this point, although there have been bids seen in the North at $210. This would be steady with last week's price level which is a strong indication of a positive cash market move by the end of the week. Asking prices are still hard to pin down, but expected to be somewhere around $138 to $140 in the South and $215 and higher in the North. Beef cut-outs at midday are higher, $2.69 higher (select) and up $2.19 per cwt (choice) with light movement of 75 total loads reported (46 loads of choice cuts, 15 loads of select cuts, no loads of trimmings, 14 loads of ground beef). FEEDER CATTLE: Triple digit gains continue to hold across the entire feeder cattle futures complex with March futures leading the complex higher with a $2 per cwt rally. Even though feeder cattle futures are in no position to break out of the wide trading range that has encompassed the feeder cattle market over the last couple of months, the building support in February live cattle markets is sparking aggressive buying activity in nearby and deferred feeder cattle contracts, helping to stimulate interest through the session. LEAN HOGS: Strong buyer support quickly redeveloped midmorning in nearby April lean hog futures, with the move above $70 per cwt once again helping to spark additional longer term support into the complex. The firmness in pork values in morning pork cutout reports is helping to draw additional interest back to the entire market, which may stimulate additional late-day support in spring and summer contracts despite the lack of uncertainty through the remainder of the complex. Cash prices are lower on the National Direct morning cash hog report. The weighted average price fell $0.23 per cwt to $61.31 per cwt with the range from $54.00 to $64.00 per cwt on 3,880 head reported sold. Cash prices unreported due to confidentiality on the Iowa Minnesota Direct morning cash hog report. The National Pork Plant Report reported 273 loads selling with prices up $0.85 per cwt. Lean hog index for 2/19 is at $66.38 down 0.02, with a projected two-day index of $66.40, up 0.02. Rick Kment can be reached at rick.kment@dtn.com (ES) Copyright 2016 DTN/The Progressive Farmer. All rights reserved.