DTN Midday Livestock Comments 10/14 12:10

DTN Midday Livestock Comments 10/14 12:10 Triple-Digit Gains Hold in Cattle Trade Strong gains continue to hold in cattle futures Friday morning as traders square positions following the aggressive market shift. Narrow price shifts continue to be seen in the hog market as light volume continues to be seen. By Rick Kment DTN Analyst GENERAL COMMENTS: Strong gains continue to hold in cattle futures Friday as traders continue to hold triple-digit gains at midday. The $1.30 to $1.60 per cwt gains seen in both live cattle and feeder cattle markets are significantly position shifts, but compared to aggressive losses seen through the rest of the week, the market remains in a vulnerable position. Corn prices are higher in light trade. December corn futures are 8 cents lower per bushel. Stock markets are higher in light trade. The Dow Jones is 70 points higher while Nasdaq is up 9 points. LIVE CATTLE: Firm support is holding in live cattle futures based on position taking in all live cattle contracts. Triple-digit moves are likely to hold give the light volume, as December and February contract months continue to hold the most aggressive gains. The sharp losses early in the week have been cut into by the Friday price moves, but the tone of the market remains extremely weak, leaving the market vulnerable for another market shift lower early next week. Cash cattle activity is expected to be done for the week following moderate trade which developed at lower price levels Wednesday and Thursday. The aggressive pressure in futures trade quickly set the tone for weaker cash cattle sales, and by the time higher futures price levels developed Friday, packers and feed yard managers seem to have their eyes set on next week's activity. Beef cut-outs at midday are mixed $0.43 lower (select) and up $0.97 per cwt (choice) with light movement of 54 total loads reported (28 loads of choice cuts, 14 loads of select cuts, no loads of trimmings, 12 loads of ground beef). FEEDER CATTLE: Triple-digit gains continue to hold in feeder cattle futures, although the strong late week support will not be considered technically significant given the aggressive pressure which has developed through the week. But what this move could mean, is creating a springboard to draw additional buyer support early next week. November contracts continue to lead the complex higher, moving $1.72 per cwt in late-morning support, although contracts remain at $166.55 per cwt. LEAN HOGS: Lean hog futures remain mixed in a narrow trading range as light movement continues to trickle into the complex at the end of the week. October and December contracts remain under light pressure with the focus on October contracts going off the board at the end of the day, leaving December as spot month contracts with prices now officially below $44 per cwt in front month futures. The lack of support in the hog market is not being overshadowed by the buyer support which has developed through the week and brought prices back from contract lows. Narrow ranges are expected to hold through the rest of the session Friday afternoon. Cash prices are lower on the National Direct morning cash hog report. The weighted average price fell $1.74 per cwt to $45.44 per cwt with the range from $43.00 to $48.00 on 2,821 head reported sold. Cash prices are unchanged on the Iowa Minnesota Direct morning cash hog report. The weighted average price remained steady at per cwt to $47.35 per cwt with the range from $43.00 to $48.00 on 935 head reported sold. The National Pork Plant Report reported 130 loads selling with prices adding $1.07 per cwt. Lean hog index for 10/12 is at $52.76 down 0.03 with a projected two-day index of $52.54 down 0.22. Rick Kment can be reached at rick.kment@dtn.com (ES) Copyright 2016 DTN/The Progressive Farmer. All rights reserved.