DTN Midday Livestock Comments 09/16 12:14

DTN Midday Livestock Comments 09/16 12:14 Follow-Through Gains Develop in Cattle Futures Cash cattle trade starts to develop Friday morning. This is starting to spark additional support. The increased support into the cattle market is likely to help draw additional market activity back into the complex through the end of the session. By Rick Kment DTN Analyst GENERAL COMMENTS: Triple-digit gains have quickly developed across the live cattle futures complex. This has created aggressive buyer support to move back into both live cattle and feeder cattle markets, and pushed October through February contracts to $108 per cwt price levels at midday. Lean hog futures remain mixed at midday, although narrow trading ranges are seen as volume remains light. Corn prices are higher in light trade. December corn futures are 6 cents per bushel higher. Stock markets are lower in light trade. The Dow Jones is lower 92 points lower while Nasdaq is down 13 points. LIVE CATTLE: Even though early trade remained sluggish with trade mixed in a narrow range, the early lack of direction led the way to strong buyer support and triple-digit gains. This is pushing all nearby contracts above $108 per cwt at midday. At close these levels will spark additional firmness early next week and should spark increased commercial interest to redevelop over the near future. Cash cattle trade is starting to develop Friday morning with limited activity starting to be seen in Nebraska at $170 per cwt. This is $3 to $4 per cwt over last week's price average. A few cattle are seen in the south sold near $110 per cwt, as much as $5 per cwt higher than last week. It will be hard to determine what the average price will be at this point, although prices will be firmly higher based on the aggressive support in futures prices. Beef cut-outs at midday are lower $0.30 lower (select) and down $0.21 per cwt (choice) with active movement of 68 total loads reported (32 loads of choice cuts, 12 loads of select cuts, 4 loads of trimmings, 20 loads of ground beef). FEEDER CATTLE: Triple-digit gains have flooded into the feeder cattle futures as firm support has redeveloped not only into live cattle futures, but also through cash cattle markets at the end of the week. This has pushed front-month September contracts once again above $135 per cwt, which is helping to draw buyers into all contract months at the end of the week. LEAN HOGS: Lean hog futures have hovered in a narrow range through Friday morning with nearby contracts holding at 7 cent per cwt losses in October contracts with traders remaining largely on the sidelines due to the extensive losses earlier in the week and traders busy taking protection before the weekend break. The lack of market support over the last several trading sessions has raised uncertainty about the entire hog market and direction of the complex through the end of the year and into 2017 and overall production levels, which may continue to shift trade activity over the near and distant future. Cash prices are lower on the National Direct morning cash hog report. The weighted average price fell $1.47 per cwt to $53.13 per cwt with the range from $50.00 to $55.00 on 2,857 head reported sold. Cash prices are lower on the Iowa Minnesota Direct morning cash hog report. The weighted average price fell $1.42 per cwt to $53.54 per cwt with the range from $50.00 to $55.00 on 94 head reported sold. The National Pork Plant Report reported 156 loads selling with prices adding $0.86 per cwt. Lean hog index for 9/14 is at $63.59 down 0.24 with a projected two-day index of $63.05 down 0.54. Rick Kment can be reached at rick.kment@dtn.com (ES) Copyright 2016 DTN/The Progressive Farmer. All rights reserved.