DTN Midday Livestock Comments 12/22 12:06

DTN Midday Livestock Comments 12/22 12:06 Cash Cattle Trade Pushed Cattle Futures Higher Strong gains in live cattle futures has been driven by the development of stronger cash cattle markets Thursday. Lean hog futures remain directionless in light activity. By Rick Kment DTN Livestock Analyst GENERAL COMMENTS: Livestock futures are mostly higher at midday Thursday driven by additional buyer support stepping into the live cattle and feeder cattle markets. The development of cash cattle trade has helped to draw additional support to the complex. Corn prices are lower light in trade. March corn futures are 1 cent lower. Stock markets are lower in light trade. The Dow Jones is 32 points lower while Nasdaq is down 29 points. LIVE CATTLE: Strong triple-digit gains have flooded into front-month December contracts based on the development of higher cash cattle trade. This has pushed December contracts above $114 per cwt, and the light trade volume continues to spark additional market support in the complex. Light to moderate gains are holding at midday in the rest of the market, although little additional direction is expected to be seen. Cash cattle activity is starting to develop with dressed trade in the North reported at $180 per cwt while trade in the South is seen on a few cattle at $115 per cwt. This is $3 to $5 per cwt higher than last week, which may spark some additional activity through the end of the day. Beef cut-outs at midday are higher, $0.15 higher (select) and up $0.09 per cwt (choice) with light movement of 49 total loads reported (21 loads of choice cuts, 13 loads of select cuts, 8 loads of trimmings, 8 loads of ground beef). FEEDER CATTLE: Moderate buyer support is moving back into the feeder cattle market following the overall lack of direction seen through the morning. Prices have shifted higher and lower during morning trade, but the ability to bring firmer cash cattle activity back into the market has sparked increased support from nearby buyers. Trade interest may remain sluggish through most of the session, although the tone of the market is firming toward the end of the week. LEAN HOGS: Light trade is seen through lean hog futures as traders remain focused on the light trade seen in the market. The overall lack of direction is a factor of the incredible light trade in the market and traders focusing on clearing the market before Christmas weekend. This may bring additional market shifts through the end of the session, although trade volume remains sluggish. Cash prices are lower on the National Direct morning cash hog report. The weighted average price fell $0.47 at $52.16 per cwt with the range from $45.00 to $53.00 on 3,635 head reported sold. Cash prices are lower on the Iowa Minnesota Direct morning cash hog report. The weighted average price fell $0.97 at $51.84 per cwt with the range from $51.00 to $53.00 on 1,210 head reported sold. The National Pork Plant Report reported 89 loads selling with prices falling $0.65 per cwt. Lean hog index for 12/20 is at $58.18 up $0.04 with a projected two-day index of $58.18 unchanged. Rick Kment can be reached at rick.kment@dtn.com (ES) Copyright 2016 DTN/The Progressive Farmer. All rights reserved.