DTN Midday Livestock Comments 05/11 12:08

DTN Midday Livestock Comments 05/11 12:08 Firm Gains Hold Across Livestock Complex Sharp gains hold across the lean hog complex at midday Wednesday based on the firmness of pork values and the expectation of additional long term support stepping into the market. Live cattle futures have held light gains through most of the morning with little interest developing. By Rick Kment DTN Analyst GENERAL COMMENTS: Strong gains are seen in lean hog and feeder cattle futures through the morning trade as buyers focus on stepping back into the complex. Light support is hanging around the live cattle complex, but so far, very little long-term support is able to be seen in the market. Corn prices are lower. May corn futures are 5 cents lower. Stock markets are lower in light trade. The Dow Jones is 134 points lower while Nasdaq is down 17 points. LIVE CATTLE: Moderate gains are holding in front month June futures at midday, although the rest of live cattle futures remain extremely weak with single digit gains seen at midday. The lack of trade activity unable to be affected by the aggressive surge in boxed beef values over the last two days is somewhat concerning as traders remain concerned about the potential longterm impact of pushing prices higher given the current cash markets and overall demand for beef over the upcoming weeks and months. Cash cattle markets are still quiet even though there is starting to be a few bids developing in the South at $124. Asking prices are holding at $132 to $134 in the South and $225 and higher in the North. Active trade is not likely to develop until the Thursday or Friday. The support in the wholesale beef market should help to keep feeders from settling early in the week. Beef cut-outs at midday are higher, $4.04 higher (select) and up $3.33 per cwt (choice) with active movement of 102 total loads reported (45 loads of choice cuts, 23 loads of select cuts, 8 loads of trimmings, 27 loads of ground beef). FEEDER CATTLE: Strong gains continue to be seen in nearby feeder cattle futures with gains over $1 per holding at midday. Trade volume remains light through the complex, although the tone of the market remains light, the focus through the complex has now returned to the movement in the grain market as prices Wednesday have backed away from the gains seen following the USDA report Tuesday. There is likely to be some additional back and forth over the next couple of days, but the strong beef value support seen through the week should help to give the market a strong undertone. LEAN HOGS: Aggressive gains continue to surge through the complex through the morning with June through October futures holding triple-digit gains based on firm market expectations and the potential of additional fundamental and commercial support redeveloping over the next several weeks. This could help to draw prices to new short term highs, over the coming days. Cash prices are lower on the National Direct morning cash hog report. The weighted average price fell $0.92 per cwt to $70.68 per cwt with the range from $70.52 to $73.50 per cwt on 2,546 head reported sold. Cash prices are lower on the Iowa Minnesota Direct morning cash hog report. The weighted average price fell $0.41 per cwt to $72.97 per cwt with the range from $72.00 to $73.50 per cwt on 150 head reported sold. The National Pork Plant Report reported 184 loads selling with prices up $0.49 per cwt. Lean hog index for 5/9 is at $75.12, up 0.38 with a projected two-day index of $75.61, up 0.49. Rick Kment can be reached at rick.kment@dtn.com (ES) Copyright 2016 DTN/The Progressive Farmer. All rights reserved.