DTN Midday Livestock Comments 10/24 12:14

DTN Midday Livestock Comments 10/24 12:14 Cattle Futures Holding Triple-Digit Gains Monday Aggressive triple-digit gains holding at midday following bullish cattle on feed report Friday moving buyers back into the market. Trade volume is sluggish in most areas, although price levels remain firm. By Rick Kment DTN Analyst GENERAL COMMENTS: Strong buyer support is holding across cattle trade as bullishness from the cattle on feed report helped to spark increased support in the live cattle and feeder cattle markets. Triple-digit gains are holding since prices surged higher at opening bell, although additional support has been hard to find through most of the day with very little increased volume stepping into the market. Corn prices are lower in light trade. December corn futures are 4 cents lower per bushel. Stock markets are higher in light trade. The Dow Jones is 66 points higher while Nasdaq is up 41 points. LIVE CATTLE: Sharp gains are holding Monday morning in live cattle futures with nearby futures holding gains of $2.20 to $2.50 per cwt based on tighter supplies of cattle in feedlots. The expectation that supplies are increasing may continue to keep buyers active through the session and may bring about additional support through the next couple of trading session. Cash cattle markets are quiet early Monday morning although the focus is currently on the aggressive gains in futures trade following the strong support in the cattle on feed report seen Friday afternoon. Beef cut-outs at midday are mixed $0.26 lower (select) and up $1.18 per cwt (choice) with light movement of 64 total loads reported (34 loads of choice cuts, 13 loads of select cuts, 1 load of trimmings, 16 loads of ground beef). FEEDER CATTLE: October feeder cattle futures have posted a narrow gain with 47 cent gains as traders are focusing on more aggressive support in deferred contracts. The support is seen in November and January contracts with gains in these contracts holding $2.80 to $3 per cwt midday as the support seen from sharply lower than expected cattle placements in the October 1 cattle on feed report is helping to draw buyer support back into the market. LEAN HOGS: Follow through support has quickly moved into front month December lean hog futures with support seen in the cattle market holding through the morning and able to spill over to the hog complex. The ability to sustain price levels over $43 per cwt in front-month lean hog futures could spark additional buying interest over the near future and bring about more long-term buying activity in not only nearby contracts, but also the rest of the hog complex. Cash prices are lower on the National Direct morning cash hog report. The weighted average price fell $0.80 per cwt to $44.42 per cwt with the range from $42.00 to $46.50 on 2,523 head reported sold. Cash prices are lower on the Iowa Minnesota Direct morning cash hog report. The weighted average price fell $0.01 per cwt to $45.80 per cwt with the range from $42.00 to $46.50 on 915 head reported sold. The National Pork Plant Report reported 142 loads selling with prices adding $0.99 per cwt. Lean hog index for 10/20 is at $52.49 up $0.17 with a projected two-day index of $51.85 down $0.64. Rick Kment can be reached at rick.kment@dtn.com (ES) Copyright 2016 DTN/The Progressive Farmer. All rights reserved.