DTN Midday Livestock Comments 03/16 12:05

DTN Midday Livestock Comments 03/16 12:05 Firm Gains Hold on Renewed Beef Support Strong support is seen through April live cattle and lean hog contracts based on aggressive pork and beef gains Wednesday morning. Increased fundamental support is helping to rally commercial buyer interest throughout the livestock market. By Rick Kment DTN Analyst GENERAL COMMENTS: Moderate-to-strong gains have developed midday Wednesday following strong fundamental support in both boxed beef and pork cutout values in morning reports. This is drawing commercial buyer interest into front-month futures, while light support is trickling into the rest of the complex. Corn prices are lower. May corn futures are 0.5 cent lower. Stock markets are lower in light trade. The Dow Jones is 23 points lower while Nasdaq is down 5 points. LIVE CATTLE: April live cattle futures continue to gain strong support midday based primarily on aggressive buyer support in boxed beef values as triple-digit gains quickly developed in both choice and select markets. April futures continue to advance above $141.50 per cwt as additional support is developing through the complex, although the widening between the April and June contracts is starting to create some concerns. Cash cattle activity is still quiet with no bids developing at this point in the day. It may be Thursday or Friday before even bids are seen at this point as there seems to be a lot of focus on the direction of beef values and cattle on feed report results. A few asking prices are seen with prices around $142 to $143 in the South and $225 and higher in the North. Beef cut-outs at midday are higher, $2.48 higher (select) and up $2.59 per cwt (choice) with light movement of 94 total loads reported (54 loads of choice cuts, 17 loads of select cuts, no loads of trimmings, 23 loads of ground beef). FEEDER CATTLE: Moderate follow-through buyer support has quickly developed through the complex Wednesday morning with traders focusing on late spring through fall contracts based on expected tighter supplies and increased demand for beef through the upcoming months. The continued support in beef values is helping to draw additional trade into the feeder cattle market late morning, which will likely spark additional firm market gains through the rest of the cattle market at the end of the week. LEAN HOGS: Strong gains have quickly developed in front-month April lean hog futures at midday following the strong shift higher in pork values in the morning cutout report. Although trade beyond front-month contracts remains mixed in a narrow range, the focus on regaining early week losses continues to draw buyers support, pushing April futures 90 cents higher at midday. Cash prices are lower on the National Direct morning cash hog report. The weighted average price fell $1.11 per cwt to $61.18 per cwt with the range from $60.63 to $63.50 per cwt on 4,118 head reported sold. Cash prices unreported due to confidentiality on the Iowa Minnesota Direct morning cash hog report. The National Pork Plant Report reported 332 loads selling with prices up $2.11 per cwt. Lean hog index for 3/14 is at $66.79 up 0.04, with a projected two-day index of $66.78, down 0.01. Rick Kment can be reached at rick.kment@dtn.com (ES) Copyright 2016 DTN/The Progressive Farmer. All rights reserved.