DTN Midday Livestock Comments 04/19 12:01

DTN Midday Livestock Comments 04/19 12:01 Light to Moderate Gains Redevelop Tuesday Short-covering across the cattle complex has allowed light to moderate gains to develop at midday following mixed trade activity, which has been seen through most of the morning. Some additional buyer potential is developing through the end of the session, although volume remains light. By Rick Kment DTN Analyst GENERAL COMMENTS: Light activity is seen through the complex with mixed prices seen in live cattle and feeder cattle markets. Firm support is attempting to develop in summer and fall live cattle futures based on short-covering opportunities, although volume remains light. Lean hog futures remain light across the entire complex with firm gains holding. Corn prices are higher. May corn futures are 1 cent higher. Stock markets are lower in light trade. The Dow Jones is 2 points lower while Nasdaq is down 39 points. LIVE CATTLE: Live cattle futures have bounced back and forth between moderate gains and losses through most of the morning as the latest market shift has brought about renewed buyer support in all but front-month April contracts. Traders are focusing on short-covering activity following Monday's limit-down shift, but if prices remain in a narrow range, it will likely keep markets stable through the rest of the session. Cash cattle activity is generally quiet with a few bids starting to develop in Nebraska by a regional buyer at $209 to $210 per cwt. Active trade is expected to be delayed until midweek or later. Beef cutouts at midday are lower, $1.33 lower (select) and down $1.33 per cwt (choice) with light movement of 99 total loads reported (57 loads of choice cuts, 20 loads of select cuts, 12 loads of trimmings, nine loads of ground beef). FEEDER CATTLE: Strong buyer support has developed in feeder cattle futures based on short-covering activity with gains in May contracts leading the complex higher. Light trade volume is seen across the entire market, although the inability to hold consistent price movement across all markets could limit additional activity. LEAN HOGS: Firm buyer support has redeveloped Tuesday. June through August futures are holding gains of 40 cents to 45 cents per cwt as traders remain focused on still sluggish cash market activity, but the potential to draw seasonal support into pork values may help to draw buyers slowly back to the complex. Cash prices are lower on the National Direct morning cash hog report. The weighted average price fell $1.46 per cwt to $60.80 per cwt with the range from $60.51 to $64.00 per cwt on 3,160 head reported sold. Cash prices are unreported due to confidentiality on the Iowa Minnesota Direct morning cash hog report. The National Pork Plant Report reported 187 loads selling with prices up $0.57 per cwt. Lean hog index for April 15 was $66.55, down 0.12 with a projected two-day index of $66.70, up 0.15. Rick Kment can be reached at rick.kment@dtn.com (ES) Copyright 2016 DTN/The Progressive Farmer. All rights reserved.