DTN Midday Livestock Comments 03/04 11:57

DTN Midday Livestock Comments 03/04 11:57 Feeder Cattle Futures Rally Higher Late Friday Morning Despite sluggish early trade, strong buyer support flooded the cattle market late morning Friday. This pushed feeder cattle futures to triple digit gains as traders focus on end of the week positioning opportunities and the ability to draw additional support back into the live cattle complex. Lean hog futures remain mixed, although the focus remains on quiet trade late in the week. By Rick Kment DTN Analyst GENERAL COMMENTS: Cattle futures have surged higher at midday, sparked by an aggressive market gain in feeder cattle buying. This has helped to draw additional support into the live cattle complex, which is drawing prices 30 to 55 cents per cwt higher in all nearby and deferred contract months. The focus through the complex is now moving to the development of cash cattle trade later through the afternoon Friday. Corn prices are higher. May corn futures are 3/4 cent higher. Stock markets are higher in light trade. The Dow Jones is 65 points higher while Nasdaq is up 20 points. LIVE CATTLE: Moderate to strong buyer activity has stepped back into the live cattle futures market with April futures posting a 70 cent per cwt rally at midday. This has quickly replaced the narrowly mixed trade, which has held through the entire morning as traders continue to focus on the strong market support. Firm gains may continue to hold through the rest of the morning as traders look for the potential of long term fundamental support as the month continues. Cash cattle trade looks like it will be a late Friday affair once again this week with bids still holding at $135 in the South and $214 in the North. The lackluster activity in the futures market and inability to move beef values in cutout reports is not sparking any interest on either side of the cash market debate. Asking prices are holding at at $138 to $140 in the South for now and $218 and higher in the North. Beef cut-outs at midday are higher, $0.37 higher (select) and up $1.02 per cwt (choice) with light movement of 84 total loads reported (55 loads of choice cuts, 7 loads of select cuts, no loads of trimmings, 21 loads of ground beef). FEEDER CATTLE: Early mixed trade across the cattle complex have quickly sparked strong buyer support in all feeder cattle futures with both nearby and far off deferred futures contracts posting triple-digit gains at midday. The light volume in the market is expected to be the main reason for the surge in prices at midday as late-week positioning is developing through the complex. This could draw additional price support through the rest of the trading session. LEAN HOGS: Lean hog futures remain lightly traded Friday morning with very little market direction through the complex as nearby futures are holding 5 to 30 cent gains, while deferred contracts are steady to 10 cents lower. The lack of overall activity in the market continues to keep the tone of the market focused on the light volume in the complex during the morning with very little long-term direction developing through the end of the week. April futures are holding tightly onto $70 per cwt gains with a 27-cent-per-cwt gain as traders are looking for increased market support in all spring and summer contracts. Cash prices are lower on the National Direct morning cash hog report. The weighted average price fell $1.00 per cwt to $61.21 per cwt with the range from $55.50 to $62.50 per cwt on 2,896 head reported sold. Cash prices unreported due to confidentiality on the Iowa Minnesota Direct morning cash hog report. The National Pork Plant Report reported 173 loads selling with prices up $0.01 per cwt. Lean hog index for 3/2 is at $66.91 up 0.14, with a projected two-day index of $66.90, down 0.01. Rick Kment can be reached at rick.kment@dtn.com (ES) Copyright 2016 DTN/The Progressive Farmer. All rights reserved.