DTN Midday Livestock Comments 03/15 12:06

DTN Midday Livestock Comments 03/15 12:06 Strong Gains Quickly Sweep Across Cattle Complex Tuesday Morning Sharp gains are seen in live cattle and feeder cattle trade with triple digit support quickly forming as boxed beef values surged higher Tuesday. The expectation that the increased demand for beef may continue to draw additional buyer interest into the market is pulling commercial interest to the market. By Rick Kment DTN Analyst GENERAL COMMENTS: Strong cattle buyer support has quickly flooded into the market as traders quickly focus on the aggressive beef market support seen in boxed beef values on the morning report. This has sparked triple digit gains in both feeder cattle and live cattle trade at midday. Corn prices are lower. May corn futures are 0.5 cent lower. Stock markets are lower in light trade. The Dow Jones is 39 points lower while Nasdaq is down 28 points. LIVE CATTLE: The sharp rally in boxed beef values midmorning created renewed buyer support through nearby live cattle futures contracts. This helped to push April and June futures $1.12 to $1.20 per cwt higher as traders focused on short term demand support quickly developing across the market. April futures have moved above $140 per cwt. Sustained support above that level could help draw additional commercial buyer interest over the coming days. Cash cattle markets are generally quiet Tuesday with bids still undeveloped. A few asking prices of $141 per cwt are seen in the South, but given the support in beef cutouts and futures trade it is questionable if these may be revised before the end of the day. Beef cut-outs at midday are higher, $4.63 higher (select) and up $3.45 per cwt (choice) with light movement of 63 total loads reported (31 loads of choice cuts, 10 loads of select cuts, 3 loads of trimmings, 20 loads of ground beef). FEEDER CATTLE: Strong triple-digit gains that develop early in the trading session have expanded to even greater support given the strong boxed beef values in the morning report. April feeder cattle futures are leading the complex higher with a $2 per cwt rally as traders continue to focus on the potential for tightening supplies through the summer months as well as firming demand for beef drawing additional buyers back into the complex. LEAN HOGS: Following aggressive front-month losses in April contracts Monday, the lean hog complex remains at a near standstill with prices hovering on either side of unchanged with prices grouped from 20 cents lower to 20 cents higher in light trade volume and little direction developing through the entire morning. The focus on widening the price spread between April and June contracts continues to bring additional uncertainty to the market, but at this point traders are unwilling to step off of the sidelines and into the market. Cash prices are lower on the National Direct morning cash hog report. The weighted average price fell $0.38 per cwt to $61.91 per cwt with the range from $56.00 to $64.00 per cwt on 5,100 head reported sold. Cash prices higher on the Iowa Minnesota Direct morning cash hog report. The weighted average price added $0.43 per cwt to $63.57 per cwt with the range from $56.00 to $64.00 per cwt on 2,095 head reported sold. The National Pork Plant Report reported 208 loads selling with prices down $0.65 per cwt. Lean hog index for 3/10 is at $66.66 up 0.10, with a projected two-day index of $66.75, up 0.09. Rick Kment can be reached at rick.kment@dtn.com (ES) Copyright 2016 DTN/The Progressive Farmer. All rights reserved.