DTN Midday Livestock Comments 02/29 11:53

DTN Midday Livestock Comments 02/29 11:53 February Live Cattle Futures Surge Higher Monday The lack of trade activity in the livestock market has sparked aggressive gains in front-month February live cattle futures. This is pushing contracts near $140 per cwt at midday before February futures expire. The rest of the livestock market remains quietly traded Monday morning. By Rick Kment DTN Analyst GENERAL COMMENTS: Front-month February live cattle futures are surging higher in extremely light trade, although the rest of the complex remains extremely sluggish. Lean hog futures are under light to moderate pressure with April lean hog futures holding the most significant losses late Monday morning. Corn prices are lower. March corn futures are 1 cent lower. Stock markets are higher in light trade. The Dow Jones is 48 points higher while Nasdaq is up 18 points. LIVE CATTLE: February live cattle futures continue to surge higher in late trade just before expiration. Front-month contracts are holding $2.40-per-cwt gains and flirting with $140 per cwt at midday. The rest of the complex is as inactive as possible on leap day with the complex hovering from 10 to 30 cents per cwt lower. Traders are holding onto extremely light volume, which is not expected to change before closing bell. Cash cattle markets are still untraded Friday morning although bids are becoming more active at $133 to $135 per cwt in the South and $210 in the North. Asking prices continue to hold at $138 to $139 in the South and $215 and higher in the North as feedlot managers hold on for higher cash prices. It may be late afternoon before all business is done through the area. Beef cut-outs at midday are higher, $0.93 higher (select) and up $0.18 per cwt (choice) with light movement of 58 total loads reported (33 loads of choice cuts, 10 loads of select cuts, no loads of trimmings, 15 loads of ground beef). FEEDER CATTLE: Despite the aggressive rally in front-month February live cattle futures, the rest of the cattle market remains relatively quiet Monday morning as traders try to gain back Friday losses, but the little activity seems to be focused on the end of month positioning. Light trade may continue to be seen through the end of the session, but this could limit additional support over the next few days during early March. LEAN HOGS: Light trade is seen through the entire hog complex with front-month April contracts holding the brunt of the pressure Monday morning with prices 70 cents per cwt lower at midday. Outside of front month April pressure, the rest of the complex is confined in a narrow trading range of 10 to 30 cents per cwt, as the lack of volume is allowing traders to square positions at month's-end. Cash prices are lower on the National Direct morning cash hog report. The weighted average price fell $0.74 per cwt to $61.23 per cwt with the range from $59.00 to $62.83 per cwt on 2,825 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 155 loads selling with prices up $1.06 per cwt. Lean hog index for 2/25 is at $66.60, up 0.08, with a projected two-day index of $66.76, up 0.16. Rick Kment can be reached at rick.kment@dtn.com (ES) Copyright 2016 DTN/The Progressive Farmer. All rights reserved.