DTN Midday Livestock Comments 10/18 11:49

DTN Midday Livestock Comments 10/18 11:49 Live Cattle Futures Rebound Midday Tuesday Despite lackluster interest through most of the morning Tuesday, firm buyer interest redeveloped midday in nearby live cattle futures. By Rick Kment DTN Analyst GENERAL COMMENTS: Despite lackluster interest through most of the morning Tuesday, firm buyer interest redeveloped midday in nearby live cattle futures. This pushed October and December contracts 70 to 80 cents per cwt higher, as traders focus on regaining buyer interest which developed early Monday. Live cattle futures have shifted higher at midday following a choppy morning of trade. The overall lack of direction through the first few hours seems to have created increased interest in nearby live cattle markets despite narrowly mixed trading ranges in the rest of livestock trade. Corn prices are higher in light trade. December corn futures are 2 cents higher per bushel. Stock markets are higher in light trade. The Dow Jones is 100 points higher while Nasdaq is up 64 points. LIVE CATTLE: Follow-through buyer support is attempting to develop through the complex Tuesday morning despite the inability for buyers to gain traction through the morning. Live cattle trade has gone up and down through most of the morning with prices hovering in a moderate to wide range, but renewed buyer support at midday is helping to draw interest back to the table; this pushed nearby contracts 70 to 80 cents per cwt higher. The ability to hold these gains through the end of the session will be important to spark additional interest into the market and sustain increased volume later in the week. Cash cattle markets remain quiet Tuesday morning with a few asking prices developing through the South at $100 to $102, although there continues to be no additional interest seen through the rest of cattle country. Bids are still nowhere to be seen and may be midweek or later given the lack of interest in the rest of the market. Beef cut-outs at midday are $0.09 higher (select) and up $0.05 per cwt (choice) with light movement of 69 total loads reported (22 loads of choice cuts, 22 loads of select cuts, 7 loads of trimmings, 18 loads of ground beef). FEEDER CATTLE: Feeder cattle futures have moved around in a wide trading range during the morning Tuesday as traders have been unwilling to give back gains seen early in the week, but traders continue to be reluctant to step back into the complex with any consistency. Feeder cattle markets are hovering between 27 cents lower and 25 cents higher at midday with trade remaining extremely light. The lack of volume is expected to create market shifts and potential price volatility through the rest of the trading session, allowing for potential swings before the end of the day Tuesday. LEAN HOGS: Lean hog futures have remained nearly silent through the morning with nearby prices hovering on either side of unchanged at midday. The ability to sustain December contracts at slight gains has helped to calm market fears from moving to new contract lows, although the rest of the complex has posted light pressure in nearby contracts. Deferred lean hog trade have posted triple-digit losses based on the wide price premium seen between nearby and deferred contract months. This lack of support in summer and fall 2017 contract months continues to limit overall trader interest through the trading sessions. Cash prices are lower on the National Direct morning cash hog report. The weighted average price fell $1.05 per cwt to $44.82 per cwt, with the range from $44.00 to $47.00 on 3,460 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 falling $0.10 per cwt. Lean hog index for 10/14 is at $52.30, down 0.24 with a projected two-day index of $52.36 up 0.06. Rick Kment can be reached at rick.kment@dtn.com (ES) Copyright 2016 DTN/The Progressive Farmer. All rights reserved.