DTN Midday Livestock Comments 05/02 12:01

DTN Midday Livestock Comments 05/02 12:01 Triple-Digit Gains Hold in Cattle Futures Strong buyer support has quickly developed on the first trading session of May. The main focus has been seen through cattle futures where triple-digit gains have developed. Hog prices are holding firm support based on fundamental undertones. By Rick Kment DTN Analyst GENERAL COMMENTS: Triple-digit gains continue to be seen through the cattle market as traders remain focused on rebounding buyer interest after the first of the month. The focus in the complex seem to be intent on helping to draw support to summer contracts. Corn prices are lower. May corn futures are 3 cents lower. Stock markets are higher in light trade. The Dow Jones is 77 points higher while Nasdaq is up 11 points. LIVE CATTLE: Live cattle futures moved higher in early trade with the focus on early-month trade taking over the complex. This has brought about increased commercial support to the market, brining triple digit gains into all markets. The interest seems to be focused on trade potential later in the week and the ability to stabilize the chart long term. Cash cattle markets are quiet with show list distribution the main focus of the day as bids and asking prices are still undeveloped. Beef cut-outs at midday are lower, $1.63 lower (select) and down $0.25 per cwt (choice) with light movement of 45 total loads reported (22 loads of choice cuts, 8 loads of select cuts, no loads of trimmings, 15 loads of ground beef). FEEDER CATTLE: Nearby gains have rebuilt triple-digit gains following a midmorning slump through the cattle market as buyers continue to focus on stepping back into the complex after the first of the month. The focus on moving contracts back from the sharp losses seen over the last couple of weeks is helping to bring increased market support across the complex. LEAN HOGS: Light early-month buying support slowly developed through the early morning hours of trade, as firm support developed was seen following the strength in the market seen late last week. There continues to be some additional interest in nearby contracts as the most significant support is seen in June and July futures contracts based on the combination of cash market and pork value support expected through the next couple of weeks. Even though meat remains available for current demand, the seasonal support is keeping buyers active. Cash prices are lower on the National Direct morning cash hog report. The weighted average price fell $1.31 per cwt to $67.97 per cwt with the range from $64.00 to $70.50 per cwt on 2,695 head reported sold. Cash prices lower on the Iowa Minnesota Direct morning cash hog report. The weighted average price fell $1.77 per cwt to $68.63 per cwt with the range from $64.00 to $70.50 per cwt on 374 head reported sold. The National Pork Plant Report reported 153 loads selling with prices up $1.90 per cwt. Lean hog index for 4/28 is at $70.47, up 0.66 with a projected two-day index of $71.11, up 0.64. Rick Kment can be reached at rick.kment@dtn.com (ES) Copyright 2016 DTN/The Progressive Farmer. All rights reserved.