DTN Midday Livestock Comments 03/10 12:05

DTN Midday Livestock Comments 03/10 12:05 Cattle Futures Rally Higher Thursday Strong commercial buying interest flooded nearby cattle futures Thursday morning, sparking additional interest in live and feeder cattle contracts. Nearby feeder cattle futures lead the complex at $3 per cwt higher. By Rick Kment DTN Analyst GENERAL COMMENTS: Livestock futures are holding strong triple-digit gains in live and feeder cattle futures with traders focusing on aggressive commercial interests stepping back into the market. Lean hog futures have shaken off early losses and have slowly but steadily gained momentum through the last hour of trade, with the potential of strong late-day support redeveloping. Corn prices are higher. May corn futures are 2 cents higher. Stock markets are lower in light trade. The Dow Jones is 141 points lower while Nasdaq is down 54 points. LIVE CATTLE: Live cattle futures moved sharply higher Thursday morning as aggressive commercial buying took place in spring and summer contracts. Triple-digit gains are holding in April through August contracts, which may draw some late-week fundamental support. Cash cattle markets remain generally quiet with a few bids of $212 in the North. Given the sharp surge in futures prices, we are not likely to see any takers and trade will be pushed off to Friday. Asking prices are improving to $140 and higher in the South and $218 and higher in the North. Beef cut-outs at midday are higher, $0.17 higher (select) and up $1.36 per cwt (choice) with active movement of 93 total loads reported (64 loads of choice cuts, 13 loads of select cuts, 6 loads of trimmings, 10 loads of ground beef). FEEDER CATTLE: Strong buyer support is flooding into the feeder cattle complex as prices surged $2 to $3 per cwt higher. April futures are leading the complex with gains of $3.22 per cwt at midday, based on strong triple-digit gains in live cattle futures, as well as strong underlying support from building seasonal demand at the same time supplies are expected to remain tight through summer. LEAN HOGS: Firm gains redeveloped in late-morning trade after a lackluster start. Triple-digit price support seen on Wednesday, as well as aggressive cattle market gains on Thursday, are drawing buyers and pushing prices 50 to 70 cents per cwt higher in light-to-moderate trade. Cash prices are lower on the National Direct morning cash hog report. The weighted average price fell $0.94 per cwt to $61.78 per cwt with the range from $54.00 to $64.00 per cwt on 2,757 head reported sold. Cash prices are lower on the Iowa Minnesota Direct morning cash hog report. The weighted average price fell $1.14 per cwt to $63.00 per cwt with the range from $54.00 to $64.00 per cwt on 857 head reported sold. The National Pork Plant Report reported 144 loads selling with prices down $0.39 per cwt. Lean hog index for 3/8 is at $66.48 down 0.15, with a projected two-day index of $66.56, up 0.08. Rick Kment can be reached at rick.kment@dtn.com (ES) Copyright 2016 DTN/The Progressive Farmer. All rights reserved.