DTN Midday Livestock Comments 10/12 12:10

DTN Midday Livestock Comments 10/12 12:10 Hog Futures Post Firm Gains Midweek Strong triple-digit gains have developed in December lean hog futures Wednesday morning as buyer support has consistently stepped back into the lean hog complex. Live cattle markets remain mixed midday as volatile price shifts continue to move prices higher and lower through the morning. By Rick Kment DTN Analyst GENERAL COMMENTS: Cattle futures remain mixed Wednesday morning with front month October contracts holding 20 cent gains at midday, priced at $97.70 per cwt, following a wide but volatile market shift through the morning. Hog futures continue to gain firm commercial buyer interest as traders are steadily and consistently moving prices higher through the week, based on firmness in both fundamental and technical support. Corn prices are lower in light trade. December corn futures are 6 cents lower per bushel. Stock markets are higher in light trade. The Dow Jones is 43 points higher while Nasdaq is up 2 points. LIVE CATTLE: Back and forth price shifts have been evident through live cattle futures as traders are focused on trying to bring much needed stability back into the live cattle market. Sharp triple-digit losses in spot October contracts have been retracted by midday, but the ability to push prices higher have been met with significant resistance. Even though prices have only moved moderately higher during the higher, the market range has traded nearly $3 per cwt as traders shift nearby futures higher and lower trying to find short term support. Cash cattle activity has started to develop through the morning following early losses in futures trade with a few cattle in the South selling at $98 per cwt and cattle trading in the north priced at $154 to $455 per cwt. Futures rallied well off of morning lows, which is expected to dry up cash trade activity as well in order to see if the recent futures market support will hold. Beef cut-outs at midday are lower $0.03 lower (select) and down $1.38 per cwt (choice) with active movement of 105 total loads reported (55 loads of choice cuts, 22 loads of select cuts, 13 loads of trimmings, 15 loads of ground beef). FEEDER CATTLE: Strong pressure continues to be seen through feeder cattle futures despite market stability that appears to be developing in the live cattle market midweek. October feeder cattle futures are holding $1 per cwt losses midday, holding near $123 per cwt, while other nearby contracts remain firmly lower based on concerns of further market pressure through the rest of the cattle complex and concerns that beef market pressure through spring and summer 2017 will keep the feeder cattle market depressed for an extended period of time. LEAN HOGS: Firm buyer support continues to develop through nearby and deferred lean hog futures as traders move steadily into the complex through the week. Spot month October contracts are holding a 75 cent gain, pushing prices above $52 per cwt with December contracts holding $1.25 per cwt gains as prices are trading at $44 per cwt at midday. The ability to move prices back above these price levels is drawing increased commercial buyer interest back into the complex and helping to firm market support through the middle of the week. Cash prices are lower on the National Direct morning cash hog report. The weighted average price fell $0.13 per cwt to $45.22 per cwt with the range from $43.00 to $47.00 on 7,100 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 282 loads selling with prices adding $1.55 per cwt. Lean hog index for 10/10 is at $52.82 down 0.17 with a projected two-day index of $52.79 down 0.03. Rick Kment can be reached at rick.kment@dtn.com (ES) Copyright 2016 DTN/The Progressive Farmer. All rights reserved.