DTN Midday Livestock Comments 04/25 12:03

DTN Midday Livestock Comments 04/25 12:03 Live Cattle Futures Rally Higher Triple-digit gains develop in live cattle futures Monday morning as buyers quickly step back into the complex following the sharp losses Friday. The aggressive gains in corn markets is pressuring nearby feeder cattle trade, while deferred feeder cattle contracts are being influenced by the support in live cattle contracts. By Rick Kment DTN Analyst GENERAL COMMENTS: Strong gains are holding in live cattle futures as buyers continue to step into the futures market following the aggressive triple-digit losses that developed Friday. But it is uncertain if this one day support can help to redevelop longer-term buyer support through the entire complex. Corn prices are higher. May corn futures are 10 cents higher. Stock markets are lower in light trade. The Dow Jones is 62 points lower while Nasdaq is down 13 points. LIVE CATTLE: Moderate to strong gains are seen at midday with triple-digit gains seen through the complex as traders remain focused on the increased buyer activity following the ability to cover losses from last week. End-of-session support is likely to continue to trickle into the market, which may continue to spark additional support through the complex, although it is uncertain if this will be able to draw fundamental support back into the complex. Cash cattle remain quiet with show lists generally smaller. The pressure in cash cattle trade last week will likely put even more pressure on the complex and likely limit overall activity until midweek or later. Beef cut-outs at midday are mixed, $0.41 lower (select) and up $0.99 per cwt (choice) with moderate movement of 79 total loads reported (51 loads of choice cuts, 13 loads of select cuts, 5 loads of trimmings, 11 loads of ground beef). FEEDER CATTLE: Feeder cattle futures have remained mixed most of the morning with traders focusing on the aggressive gains in the corn markets pushing nearby contracts lower, while the renewed support based on short covering in live cattle support is helping draw additional underlying support through the rest of the feeder cattle complex. LEAN HOGS: Following sharp losses through most of the morning, mixed trade is seen in lean hog futures trade activity as light to moderate buying interest is redeveloping in deferred contracts. Firm pressure is still holding in the nearby contracts, but the losses have backed significantly away from the aggressive triple-digit moves seen early in the session, as additional buyer support appears to be moving back into the market focusing on firm underlying support through the second half of the session. Cash prices are lower on the National Direct morning cash hog report. The weighted average price fell $1.38 per cwt to $64.26 per cwt with the range from $58.00 to $66.50 per cwt on 3,071 head reported sold. Cash prices lower on the Iowa Minnesota Direct morning cash hog report. The National Pork Plant Report reported 192 loads selling with prices up $0.38 per cwt. Lean hog index for 4/21 is at $67.68, up 0.32 with a projected two-day index of $68.06, up 0.34. Rick Kment can be reached at rick.kment@dtn.com (ES) Copyright 2016 DTN/The Progressive Farmer. All rights reserved.