DTN Midday Livestock Comments 12/13 12:04

DTN Midday Livestock Comments 12/13 12:04 Cattle Futures Advance Higher with Firm Morning Support Strong support is seen in the cattle complex early Tuesday morning. The focus through the complex is based on the expectation of additional beef value support and additional technical support developing across nearby markets. By Rick Kment DTN Livestock Analyst GENERAL COMMENTS: Firm follow-through support is seen in cattle futures with gains seen near $1 per cwt or higher in most contracts. The focus remains placed on early 2017 contract months with most traders staying out of December live cattle markets early Tuesday morning. Lean hog futures remain mixed in sluggish trade as the activity is based on position taking following previous market gains. Corn prices are higher light trade. December corn futures are 4 cents higher. Stock markets are higher in light trade. The Dow Jones is 109 points higher while Nasdaq is up 64 points. LIVE CATTLE: Moderate buyer activity is seen in futures trade through the morning Tuesday with prices holding from 45 cents to $1 per cwt higher as the focus continues to be placed on the potential of further support in beef values and potential gains in cash cattle trade at the end of the week. December contracts seem to have slowed significantly with more support being based on the February contracts. The combination of colder weather and firming grain markets is also adding some premium into the early 2017 contract months. Cash cattle markets still remain quiet with bids and asking prices undeveloped at this point. It is likely that trade will be pushed off until the second half of the week, which may limit additional buyer support over the next day or so. Beef cut-outs at midday are higher $0.81 (select) and up $1.69 per cwt (choice) with light movement of 82 total loads reported (28 loads of choice cuts, 20 loads of select cuts, 10 loads of trimmings, 24 loads of ground beef). FEEDER CATTLE: Triple-digit gains continue to hold at midday following buyer support stepping back into the market following the rally Monday. Most nearby contracts are holding $1.17 to $1.30 per cwt gains which continue to draw attention to the potential of longer term market support that may carry well into 2017. LEAN HOGS: Light trade continues to be seen through lean hog futures trade Tuesday morning. Pressure is holding in nearby contracts with February contracts leading the market lower with a 92 cent per cwt loss. The lack of overall direction is seen early in the week, but traders are also focused on taking protection following the strong market surge seen over the last week. This could leave prices mixed in a narrow to moderate range through much of the week. Cash prices are lower on the National Direct morning cash hog report. The weighted average price fell $0.40 at $52.85 per cwt with the range from $45.50 to $54.00 on 3,045 head reported sold. Cash prices are unreported due to confidentiality on the Iowa Minnesota Direct morning cash hog report. The National Pork Plant Report reported 236 loads selling with prices falling $0.84 per cwt. Lean hog index for 12/9 is at $55.52 up $1.19 with a projected two-day index of $56.11 up $0.58. Rick Kment can be reached at rick.kment@dtn.com (ES) Copyright 2016 DTN/The Progressive Farmer. All rights reserved.