DTN Midday Livestock Comments 10/28 12:00

DTN Midday Livestock Comments 10/28 12:00 Gains Hold in Livestock Futures Friday Despite Light Trade Trade Friday remains sluggish as traders continue to position contracts following an aggressive week of gains and active cash market trade. Midday gains have slipped as trader interest has slowed due to lack of interest through the end of the session. By Rick Kment DTN Analyst GENERAL COMMENTS: Firm gains have developed early Friday as traders continue to step back into the complex. The continued support in futures trade has sparked additional cash market gains as activity is quickly developing in all areas with cash trade $5 per cwt higher through the South through the morning and $6 to $7 per cwt higher in the North. Corn prices are steady to lower in light trade. December corn futures are steady. Stock markets are higher in light trade. The Dow Jones is 73 points higher while Nasdaq is up 9 points. LIVE CATTLE: Light to moderate gains are holding at midday as traders adjust positions Friday following active cash trade which is developing in all areas. Active futures market support over the last two weeks has pushed October live cattle nearly $9 per cwt higher off of contract lows with contracts currently trading at $104.50 per cwt. Increased open interest over the last week has allowed for additional commercial buyer activity to move back into the complex, expanding trade activity through the end of October. Cash cattle sales have quickly developed through the morning Friday with prices seen live at $105 in both the South and North. Trade has developed in the North at $164. This trade is as much as $5 per cwt higher than last week in the South and $6 to $7 per cwt higher in the North. Beef cut-outs at midday are higher $1.57 higher (select) and up $1.08 per cwt (choice) with light movement of 58 total loads reported (32 loads of choice cuts, 13 loads of select cuts, 5 load of trimmings, 9 loads of ground beef). FEEDER CATTLE: Firm gains continue to hold Friday morning as aggressive cash cattle trade have flooded the market, confirming the recent upward movement in futures trade and bringing increased support to the market. Even though feeder cattle have backed away from triple-digit session highs, the ability to hang on to only moderate gains continues to draw buyer interest and spark follow through activity due to commercial buyer support moving back into the complex. LEAN HOGS: Strong gains continue to hold across lean hog futures as traders continue to steadily and consistently move into nearby contracts Friday morning. December contracts have pushed above $46 per cwt late Friday morning with the focus in the complex driven by overall market stability and the ability of long term market growth while increased buyer support is moving back into deferred contracts during morning trade. Light volume is likely to be seen during the last hour of trade as little additional market news is expected to be seen during the week with traders looking for more support during early November. Cash prices are lower on the National Direct morning cash hog report. The weighted average price fell $0.57 per cwt to $44.09 per cwt with the range from $42.50 to $46.00 on 3,282 head reported sold. Cash prices are lower on the Iowa Minnesota Direct morning cash hog report. The weighted average price fell $0.68 per cwt to $44.43 per cwt with the range from $42.50 to $45.50 on 647 head reported sold. The National Pork Plant Report reported 138 loads selling with prices gaining $0.63 per cwt. Lean hog index for 10/26 is at $51.85 up $0.15 with a projected two-day index of $51.75 down $0.10. Rick Kment can be reached at rick.kment@dtn.com (ES) Copyright 2016 DTN/The Progressive Farmer. All rights reserved.