DTN Midday Livestock Comments 11/30 11:55

DTN Midday Livestock Comments 11/30 11:55 Cattle Futures Holding Triple-Digit Gains Strong morning gains quickly developed in live cattle futures following the buyer support in outside markets. A combination of commercial and investment buyer support is driving live cattle futures to triple-digit gains at midday. By Rick Kment DTN Analyst GENERAL COMMENTS: Strong triple-digit gains quickly developed through live cattle futures Wednesday morning. The sharp rally in energy markets and several other outside markets helped to spark underlying buyer support in the livestock complex during midweek. There continues to be a combination of fundamental and technical support developing through the market although trade activity has slowed at midday, creating uncertainty for directional moves through the last hour of trade. Corn prices are higher light trade. December corn futures are 2 cents higher. Stock markets are mixed in light trade. The Dow Jones is 70 points higher while Nasdaq is down 36 points. LIVE CATTLE: Sharp triple-digit gains are holding in nearby live cattle futures as the support in outside markets continue to fuel a combination of commercial and investment buying activity early Wednesday. December contracts have pushed back above $110 per cwt with gains of $1.70 per cwt while other nearby contracts have also posted triple-digit gains. The inability to carry strong support to deferred futures has limited long term support through the market, but there remains volatility in nearby contracts. Cash cattle trade developed Wednesday morning ton the Fed Cattle Exchange with just over 4,000 head selling on the auction. Prices were seen from $110 to $114.25 through the market. These prices were generally $1.75 to $5 higher than most trade the previous week. Starter bids are starting to develop in feedlot country Wednesday morning also with bids in the South at $110 live basis and $172 to $173 in the North dressed basis. Active trade is likely to be delayed until sometime Thursday or Friday at this point although the spark in futures trade could cause some movement late in the day. Asking prices are seen at $114 to $115 in the South and $176 to $178 in the North. Beef cut-outs at midday are higher $0.21 higher (select) and up $0.65 per cwt (choice) with light movement of 91 total loads reported (40 loads of choice cuts, 16 loads of select cuts, 13 loads of trimmings, 22 loads of ground beef). FEEDER CATTLE: Feeder cattle futures have been pulled higher by the strong triple digit gains seen in the live cattle markets Wednesday morning. The support through the morning session has been consistent, but unable to draw aggressive trade volume despite the strong outside market moves in some commodity and financial markets. January feeder cattle futures are holding gains of $1.15 per cwt at midday, while the rest of the complex is hanging onto moderate support in sluggish morning trade. LEAN HOGS: Lean hog futures have been quickly pushed higher Wednesday morning by a joint effort from firming cash hog values and an aggressive move in cattle futures trade which has posted strong triple-digit gains through most of the morning. Most lean hog futures have remained well defined within 30 to 60 cents higher in most contracts. Front month December contracts have broken out of the range with gains of $1.07 per cwt holding at midday. The potential to draw additional fundamental support through the near future could help draw additional interest through the entire lean hog complex during early December. Cash prices are higher on the National Direct morning cash hog report. The weighted average price added $0.92 per cwt to $44.80 per cwt with the range from $40.50 to $46.50 on 14,733 head reported sold. Cash prices are higher on the Iowa Minnesota Direct morning cash hog report. The weighted average price added $0.46 per cwt to $45.15 per cwt with the range from $40.50 to $46.50 on 9,163 head reported sold. The National Pork Plant Report reported 216 loads selling with prices falling $0.22 per cwt. Lean hog index for 11/28 is at $48.03 down $0.03 with a projected two-day index of $48.22 up $0.19. Rick Kment can be reached at rick.kment@dtn.com (ES) Copyright 2016 DTN/The Progressive Farmer. All rights reserved.