DTN Midday Livestock Comments 03/28 12:02

DTN Midday Livestock Comments 03/28 12:02 Hog Futures Rally Early Monday Strong buyer support quickly developed Monday morning across nearby lean hog futures as traders focused on slightly lightly farrowing intentions through the upcoming summer and fall months. Light trade is seen through the entire complex, based on generally light overall market activity following the holiday weekend. By Rick Kment DTN Analyst GENERAL COMMENTS: Lack of overall trade activity seems to be the consistent theme of the day Monday as trade activity remains light in most all markets as traders return from the Easter weekend. Traders are looking for additional direction in the cattle complex with cash cattle markets undeveloped although beef values surged higher in morning reports Monday based on potential support early in the week. Corn prices are higher. May corn futures are 2 cents higher. Stock markets are higher in light trade. The Dow Jones is 49 point higher while Nasdaq is up 4 points. LIVE CATTLE: Live cattle futures are generally directionless in a wide range Monday morning with traders looking around as there is very little direction to be taken from other markets either. The lack of support in cash markets is limiting support in front-month April futures, which are holding light to moderate pressure, while other nearby contracts are gaining and holding narrow to moderate gains based on aggressive triple-digit gains in boxed beef values Monday morning. The lackluster moves in outside markets will likely keep most traders on the sidelines through most of the session, allowing narrow ranges to hold. Cash activity Monday morning is limited to distribution of show lists following lighter trade which developed for the most part Thursday but attracted some clean up trade through the day Friday. With prices generally $5 lower in the North and $3 lower in the South, the focus on where beef and cash markets move following the Easter holiday is going to be the draw of most trade watchers through the end of March. Beef cut-outs at midday are higher, $1.94 higher (select) and up $1.12 per cwt (choice) with light movement of 48 total loads reported (20 loads of choice cuts, 5 loads of select cuts, 10 loads of trimmings, 11 loads of ground beef). FEEDER CATTLE: Feeder cattle futures have wandered higher and lower through the morning Monday as traders continue to focus on the lack of underlying direction in the live cattle complex. The strong support in boxed beef values in the morning report helped to offset developing morning pressure, but there still remains uncertainty about just how much support can redevelop given the lack of buyer activity in the complex and recent cash market apathy. Feeder cattle contracts currently remain steady to 30 cents higher, but may remain choppy in a mixed range through the rest of the session as traders slowly step in and out of the market. LEAN HOGS: Strong early-week buyer support stepped into the lightly traded Monday market as contracts posted triple-digit gains in May through October contracts focused on the combination of underlying support coming from the hogs and pigs report Friday as well as aggressive short covering after last week's aggressive market tumble. The inability to continue to push through resistance levels had created strong moves lower last week, but traders are once again focusing on underlying support expected to develop in the coming weeks, which draw buyers could back to the table and regain market strength. Cash prices are unreported due to confidentiality on the National Direct morning cash hog report. Cash prices are unreported due to confidentiality on the Iowa Minnesota Direct morning cash hog report. The National Pork Plant Report reported 109 loads selling with prices up $1.74 per cwt. Lean hog index for 3/24 is at $65.39, down 0.26 with a projected two-day index of $65.06, down 0.33. Rick Kment can be reached at rick.kment@dtn.com (ES) Copyright 2016 DTN/The Progressive Farmer. All rights reserved.