DTN Midday Livestock Comments 04/26 12:07

DTN Midday Livestock Comments 04/26 12:07 Triple-Digit Gains Hold in Cattle Futures Sharp gains hold in cattle futures Tuesday morning with the focus through the complex and increased buyer support moving back into the market. Hog markets are mixed in a narrow trading range with the shift being placed on higher cash hog prices at midday. By Rick Kment DTN Analyst GENERAL COMMENTS: Strong triple-digit support is seen in cattle trade with buyers following the upward support which developed Monday. This helped to push additional activity into the complex and may continue to push prices higher before closing bell. Corn prices are higher. May corn futures are 2 cents higher. Stock markets are mixed in light trade. The Dow Jones is 15 points higher while Nasdaq is down 5 points. LIVE CATTLE: Triple-digit gains are holding at midday with gains seen from $1 to $1.70 per cwt after firm follow-through support developed Monday. The ability to spark increased commercial support is bringing some additional trade interest back to the market, but traders remain uncertain just how much additional price support can develop before the end of the month. Cash cattle is still undeveloped with bids and asking prices generally quiet. Active trade is likely to be pushed off until the end of the week with most movement not seen until midweek or later. Beef cut-outs at midday are mixed, $1.22 higher (select) and down $0.24 per cwt (choice) with light movement of 60 total loads reported (20 loads of choice cuts, 11 loads of select cuts, 13 loads of trimmings, 16 loads of ground beef). FEEDER CATTLE: Sharp gains have redeveloped through the feeder cattle market Tuesday, creating a two-day rally which is helping to bring additional strong support back into the market. The overall follow-through buyer interest moving into the market is sustaining underlying firmness in the market, but additional strength is expected to need to develop before additional buyer activity is seen. LEAN HOGS: Mixed trade continues to be seen through the lean hog futures market with traders backing away from early pressure, but still unwilling to move into the complex. Narrow losses are holding in nearby contracts but the offsetting support in deferred contracts is helping to draw buyer support back into the complex late in the day. Cash prices are higher on the National Direct morning cash hog report. The weighted average price added $0.54 per cwt to $65.70 per cwt with the range from $59.00 to $67.75 per cwt on 6,234 head reported sold. Cash prices lower on the Iowa Minnesota Direct morning cash hog report. The National Pork Plant Report reported 217 loads selling with prices up $1.01 per cwt. Lean hog index for 4/22 is at $68.06, up 0.38 with a projected two-day index of $68.48, up 0.42. Rick Kment can be reached at rick.kment@dtn.com (ES) Copyright 2016 DTN/The Progressive Farmer. All rights reserved.