DTN Midday Livestock Comments 11/08 12:04

DTN Midday Livestock Comments 11/08 12:04 Live Cattle Holding Triple-Digit Gains at Midday Widespread buyer support has quickly developed Tuesday morning across livestock futures. This strong rally has pushed cattle futures to triple-digit gains in nearby contracts, erasing Monday losses, and putting the emphasis on additional outside market support seen Tuesday following election day coverage. By Rick Kment DTN Analyst GENERAL COMMENTS: Triple-digit gains are holding across nearby cattle futures at midday despite the volatile early morning market shifts seen in the market as traders seem to be uneasy concerning overall trade activity Tuesday. Trade volume remains sluggish in most livestock markets, allowing the complex to remain vulnerable to additional price swings late in the session. Lean hog futures have remained increasingly stable Tuesday with firm gains holding during most of the morning. Corn prices are firmly higher in light trade. December corn futures are 8 cents higher. Stock markets are higher in light trade. The Dow Jones is 122 points higher while Nasdaq is up 43 points. LIVE CATTLE: Gains are holding at midday across live cattle futures following the up and down market shifts seen through the Tuesday trading session. The early lack of direction seen in the market quickly found market support and offset Monday pressure as traders have focused on outside market gains and election coverage Tuesday. Triple-digit gains are holding in December through April contracts may continue to bring midweek stability to the complex and the potential for firm cash market activity through the next couple of days. Cash cattle activity remains generally light Tuesday morning with just a few bids developing in Western Nebraska at $101 per cwt. Asking prices are still generally quiet through most of the regions as active trade activity is likely to be delayed until the middle of the week or later. Both sides of the market seem to be waiting to see just how things will shake out following the election and market moves Tuesday, with sharp triple digit future gains seen midday despite wide morning swings. Beef cut-outs at midday are mixed $0.93 higher (select) and down $1.23 per cwt (choice) with light movement of 56 total loads reported (26 loads of choice cuts, 13 loads of select cuts, 4 load of trimmings, 13 loads of ground beef). FEEDER CATTLE: Sharp midday gains have quickly developed across feeder cattle futures with traders looking increased direction not only in livestock futures but for additional direction from most markets as the election coverage continues. Feeder cattle contracts have rebounded from Monday losses, with January contracts leading the complex holding the $2.47 per cwt gain. Most contracts are holding triple-digit gains at midday. LEAN HOGS: Firm gains continue to hold across lean hog futures trade following moderate early support developing just at opening bell. The lack of trade volume stepping back into the complex Tuesday has limited overall market volatility through the market even though prices have shifted higher and lower in a wide range through the morning in the cattle markets. The aggressive movement in morning hog trade has helped to bring some supportive news to lean hog futures markets even though it has not added price support to the already firm gains seen at midday. December lean hog contracts are holding 25 cent gains at midday, while February and April contracts are leading the market higher with 70 cent gains. Cash prices are lower on the National Direct morning cash hog report. The weighted average price fell $0.03 per cwt to $42.09 per cwt with the range from $41.25 to $42.50 on 16,663 head reported sold. Cash prices are lower on the Iowa Minnesota Direct morning cash hog report. The weighted average price fell $0.39 per cwt to $42.22 per cwt with the range from $41.25 to $42.50 on 11,629 head reported sold. The National Pork Plant Report reported 188 loads selling with prices falling $0.23 per cwt. Lean hog index for 11/4 is at $50.46 down $0.63 with a projected two-day index of $50.14 down $0.32. Rick Kment can be reached at rick.kment@dtn.com (ES) Copyright 2016 DTN/The Progressive Farmer. All rights reserved.