DTN Midday Livestock Comments 11/21 12:17

DTN Midday Livestock Comments 11/21 12:17 Hog Futures Surge Higher Monday Lean hog futures break out of sideways trend early Monday as traders look for additional support. The support in the complex continues to develop cattle futures with firm buyer activity developing. By Rick Kment DTN Analyst GENERAL COMMENTS: Strong gains are seen in livestock futures with firm support seen in live cattle and lean hog futures. The aggressive late-morning support in lean hog trade is most surprising in the complex as fundamental support still remains weak. Corn prices are higher light trade. December corn futures are 3 cents higher. Stock markets are higher in light trade. The Dow Jones is 38 points higher while Nasdaq is up 24 points. LIVE CATTLE: Triple-digit gains have developed through live cattle futures with traders looking for follow-through support to develop across the complex. Additional support may continue to increase in the market as traders look for some additional outside market support and potential for cash markets to develop earlier than later in the week. Cash cattle activity is light, although showlists are mixed to mostly larger. Beef cut-outs at midday are higher $2.03 higher (select) and up $2.83 per cwt (choice) with light movement of 60 total loads reported (22 loads of choice cuts, 13 loads of select cuts, zero loads of trimmings, 26 loads of ground beef). FEEDER CATTLE: Early support remains focused in feeder cattle contracts based on the support in the cattle on feed report. Early gains have eroded slightly, but gains still continue to hold as traders are now focusing on the ability to draw additional support to live cattle trade through the rest of the week and strong support in beef values. LEAN HOGS: Sharp gains are holding in the lean hog futures as traders continue to quickly move back into the complex. The ability to break outside of the sideways trading range which has held through the entire month of November is helping to bring additional support to the market even though volume remains sluggish. December contracts are holding gains at $49.50 per cwt with firm support at that level. Cash prices are unreported due to confidentiality on the National Direct morning cash hog report. Cash prices are unreported due to confidentiality on the Iowa Minnesota Direct morning cash hog report. The National Pork Plant Report reported 239 loads selling with prices gaining $1.05 per cwt. Lean hog index for 11/16 is at $48.06 down $0.25 with a projected two-day index of $47.99 down $0.07. Rick Kment can be reached at rick.kment@dtn.com (ES) Copyright 2016 DTN/The Progressive Farmer. All rights reserved.