DTN Midday Livestock Comments 10/25 12:04

DTN Midday Livestock Comments 10/25 12:04 Firming Support Develops in Livestock Futures Follow-through support has developed through livestock futures as triple-digit gains have moved through feeder cattle and lean hog markets Tuesday morning. The focus on sustained commercial buyer interest is helping boost longer-term market support. By Rick Kment DTN Analyst GENERAL COMMENTS: Triple-digit gains continue to hold in feeder cattle and lean hog futures as traders remain focused on follow-through buyer support and commercial buying interest stepping back into the market through the last week of October. Live cattle futures remain higher, but buyer support remains light with gains moving away from session highs based on light volume and lack of fresh market news developing in the complex Tuesday morning. Corn prices are higher in light trade. December corn futures are 1 cent higher per bushel. Stock markets are lower in light trade. The Dow Jones is 38 points lower while Nasdaq is down 25 points. LIVE CATTLE: Buyer support has faded at midday in live cattle trade with October live cattle futures holding single-digit gains although the rest of the complex continues to sustain moderate support. Firm gains quickly redeveloped early Tuesday morning, although the support has slowly eroded due to lack of volume in the market. Activity is expected to remain sluggish through the rest of the complex, leaving prices in a limited range during the rest of the session. Cash cattle markets remain quiet Tuesday morning with bids and asking prices still generally undefined for the week. Both sides continue to focus on the futures trade and beef values before actively stepping back into the market. It may be the middle of the week or later before active trade develops although packers continue to remain short bought and show lists remain larger going into the week. Beef cut-outs at midday are higher $1.48 higher (select) and up $1.38 per cwt (choice) with light movement of 85 total loads reported (44 loads of choice cuts, 19 loads of select cuts, 11 load of trimmings, 12 loads of ground beef). FEEDER CATTLE: Triple-digit gains continue to hold in most nearby feeder cattle contracts through the morning with November futures holding a $1.62 per cwt rally holding at $124.15 per cwt. October futures have shifted lower in light pressure due to contracts expiring Thursday. The ability to draw additional support back into the market and commercial support aggressively moving into the complex continues to not only spark additional interest in the ability to the feeder cattle market, but it will help to sustain buyer activity in the live cattle market through the near future. LEAN HOGS: Despite follow through pressure developing in cash hog markets once again Tuesday morning, strong futures buying has redeveloped in nearby lean hog futures trade. December through April futures are holding triple-digit gains, just over $1 per cwt as traders continue to focus on the ability to draw commercial interest back into the market as prices move back from contract lows set last week and near October highs in nearby contract months. Cash prices are lower on the National Direct morning cash hog report. The weighted average price fell $1.13 per cwt to $44.11 per cwt with the range from $43.00 to $45.50 on 3,183 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 215 loads selling with prices adding $0.29 per cwt. Lean hog index for 10/21 is at $51.85 up $0.64 with a projected two-day index of $51.67 down $0.18. Rick Kment can be reached at rick.kment@dtn.com (ES) Copyright 2016 DTN/The Progressive Farmer. All rights reserved.