DTN Midday Livestock Comments 12/19 11:57

DTN Midday Livestock Comments 12/19 11:57 Firming Cattle Futures Trade Develops Midday Monday Early market shifts which posted mixed market activity and lack of direction have been focused on additional buyer support moving into cattle markets midday Monday. Hog futures have pulled back from support late last week with position squaring taking place due to light volume. By Rick Kment DTN Livestock Analyst GENERAL COMMENTS: Strong moves seen in feeder cattle and several live cattle futures markets have helped to sustain support seen late last week. Trade volume remains light to moderate at best, but the ability to bring additional traders to the market going into what is expected to be a sluggish week in front of Christmas, may spark additional gains. Corn prices are lower light trade. March corn futures are 4 cents lower. Stock markets are higher in light trade. The Dow Jones is 36 points higher while Nasdaq is up 33 points. LIVE CATTLE: Firm gains are seen in most nearby live cattle futures, although the overall market remains mixed as seen most of the morning. The back and forth shifts through live cattle trade have caused for lack of direction early Monday. Strong triple digit support seen Friday helped to develop additional technical support in nearby contracts, but the ability to draw active buyer interest back into the market may be limited by overall trade interest over the next couple of days. The upcoming cattle on feed report released this coming Friday, could cause increased volatility to the market. Cash cattle trade remains undeveloped at this point with bids and asking prices undefined. Show lists remain mixed, smaller numbers offered in the South and larger in the North. The focus on the upcoming holiday weekend, may pull cash cattle trade earlier than seen last week, but at the same time, limited packer interest may slow activity at the end of the week. Beef cut-outs at midday are higher, $1.60 higher (select) and up $1.00 per cwt (choice) with light movement of 69 total loads reported (33 loads of choice cuts, 14 loads of select cuts, 7 loads of trimmings, 17 loads of ground beef). FEEDER CATTLE: Firming gains are seen at midday despite the choppy back-and-forth shifts seen early in the session. Traders are holding nearby contracts 50 to 70 cents per cwt higher at midday as the focus on the ability to spark additional cash cattle support through the end of the year has helped to bring some momentum back into the feeder cattle complex. January contracts have moved above $130 per cwt Monday morning for the first time since the end of August. Follow-through support may continue to be seen through the first half of the week. LEAN HOGS: Light pressure is holding in nearby lean hog futures trade following the overall lack of active interest early Monday. Traders continue to square positions following the strong market shift higher seen late last week, as some traders continue to follow the direction of the lackluster cattle market. Trade volume is expected to remain sluggish through most of the week, although the underlying firmer tone seen over the last couple of weeks could draw traders back into the market through the end of the year. Cash prices are lower on the National Direct morning cash hog report. The weighted average price fell $0.13 at $52.77 per cwt with the range from $45.50 to $53.50 on 3,845 head reported sold. Cash prices are lower on the Iowa Minnesota Direct morning cash hog report. The weighted average price fell $0.62 at $52.76 per cwt with the range from $45.50 to $53.50 on 625 head reported sold. The National Pork Plant Report reported 165 loads selling with prices adding $0.13 per cwt. Lean hog index for 12/15 is at $57.71 up $0.12 with a projected two-day index of $58.05 up $0.34. Rick Kment can be reached at rick.kment@dtn.com (ES) Copyright 2016 DTN/The Progressive Farmer. All rights reserved.