DTN Midday Livestock Comments 09/12 12:09

DTN Midday Livestock Comments 09/12 12:09 Cattle Futures Surge Higher Monday Further Gains Flood into the live cattle and feeder cattle futures market as traders look for increased support through the complex. Firm gains are developing in front month lean hog Contracts Monday. By Rick Kment DTN Analyst GENERAL COMMENTS: Strong gains are seen in cattle futures with triple-digit gains seen in live cattle and feeder cattle futures markets. Lean hog futures are seen higher with triple-digit gains in front-month October futures holding nearby contracts higher. Corn prices are lower in light trade. September corn futures are 3 cents per bushel lower. Stock markets are higher in light trade. The Dow Jones is 129 points higher while Nasdaq is up 52 points. LIVE CATTLE: Strong triple-digit gains have continued to develop in live cattle futures with October futures moving to $106.10 per cwt with traders focusing on increased buyer support flooding into the market. The ability to sustain this support through the week is going to be huge in building sustained long-term support and bringing additional buyers back into the market over the next several weeks. Cash cattle markets are quiet Monday morning with bids and asking prices still undeveloped. Show lists are smaller in all areas except Colorado. It is expected that bids may not develop until midweek with active trade potentially not developing until late in the week. Beef cut-outs at midday are lower $0.81 lower (select) and down $0.21 per cwt (choice) with light movement of 69 total loads reported (30 loads of choice cuts, 12 loads of select cuts, 10 loads of trimmings, 17 loads of ground beef). FEEDER CATTLE: Triple-digit gains continue to hold through the cattle complex. Feeder cattle futures are taking a following role during the Monday session after commercial traders are quick to jump into the market as front month September futures have moved above $135 per cwt. Trade may slow through the last hour of trade, but firm gains are expected to continue to hold, potentially helping to draw additional buyer interest back into the complex. LEAN HOGS: October lean hog futures have rallied higher Monday morning, retracting losses which have developed late last week. The aggressive turn around in the market not only changed the direction in front month futures, but also sparked buyer support in all nearby contracts with gains seen through June 2017 contracts. It is uncertain if this will be enough to spark renewed long term support through mid-September, or if additional longer term buyer support will once again falter later in the week as seen last week. Cash prices are lower on the National Direct morning cash hog report. The weighted average price fell $1.36 per cwt to $56.62 per cwt with the range from $54.00 to $59.00 on 4,000 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 173 loads selling with prices fell $0.12 per cwt. Lean hog index for 9/8 is at $64.20 up 0.04 with a projected two-day index of $64.07 down 0.13. Rick Kment can be reached at rick.kment@dtn.com (ES) Copyright 2016 DTN/The Progressive Farmer. All rights reserved.