DTN Midday Livestock Comments 11/25 11:13

DTN Midday Livestock Comments 11/25 11:13 Sharp Gains Flood Cattle Futures Due to Thin Trade Trade activity has remained extremely light through the entire livestock market early Friday morning. The combination of shortened trading sessions Friday and markets remaining closed Thursday is keeping many traders absent, but allowing those few traders who did step into the market to push prices aggressively higher. By Rick Kment DTN Analyst GENERAL COMMENTS: Strong triple-digit gains are seen in cattle futures as traders are looking for additional support through the complex. The increased market support may continue to drive additional gains early next week, but prices are likely to remain at current levels through the remainder of the holiday shortened trading schedule Friday. Corn prices are lower light trade. December corn futures are 2 cents lower. Stock markets are higher in light trade. The Dow Jones is 55 points higher while Nasdaq is up 11 points. LIVE CATTLE: Strong nearby buyer support continues to hold in live cattle futures at midday due to lack of overall trade volume in the complex. Nearby contracts are holding triple-digit gains with traders focusing on firm support in cash cattle trade midweek, as well as the recent bounce in beef values helping to bring additional support back to the complex. December through April contracts are now trading at $11 to $112.40 per cwt which is extending the short term bullish market run. Even with the limited volume in the market, the potential to bring support back to the complex could help to drive additional trade interest back to the table early next week. Cash cattle markets are dead quiet Friday morning as most needed trade is expected to have been done before packers and feedlot managers left Wednesday night. Cash cattle trade was reported steady to $4 higher from last week's levels. Some clean up trade is possible, but at this point no one is holding their breath. Beef cut-outs at midday are higher $1.15 higher (select) and up $1.15 per cwt (choice) with light movement of 60 total loads reported (38 loads of choice cuts, 16 loads of select cuts, no loads of trimmings, 6 loads of ground beef). FEEDER CATTLE: Triple digit gains continue to hold at midday in feeder cattle contracts, although prices in all contracts have pulled back from early market support as buyers have seen limited follow through during the morning. Strong gains in cash cattle trade Wednesday late afternoon has helped to spark the renewed buyer support, but the extremely light trade volume has kept the market generally untested in many ways. LEAN HOGS: Strong early gains continue to hold in lean hog futures at midday as traders continue to focus extremely light trade volume following the Thanksgiving holiday and the abbreviated trading schedule Friday. December contracts are leading futures higher with $1.25 per cwt gains as prices have hit $51 per cwt levels. Deferred contracts are trading slightly higher in a narrow range. It is expected that markets will remain in the current price level through the end of the morning trading session as traders look forward to a full week of market activity next week with increased trade volume. Cash prices are lower on the National Direct morning cash hog report. The weighted average price fell $0.28 per cwt to $41.06 per cwt with the range from $39.00 to $42.00 on 4,082 head reported sold. Cash prices are lower on the Iowa Minnesota Direct morning cash hog report. The weighted average price fell $0.27 per cwt to $41.47 per cwt with the range from $39.00 to $42.00 on 2,378 head reported sold. The National Pork Plant Report reported 151 loads selling with prices gaining $1.11 per cwt. Lean hog index for 11/22 is at $47.52 up $0.03 with a projected two-day index of $47.60 up $0.08. Rick Kment can be reached at rick.kment@dtn.com (ES) Copyright 2016 DTN/The Progressive Farmer. All rights reserved.