DTN Midday Livestock Comments 01/09 12:10

DTN Midday Livestock Comments 01/09 12:10 Cattle Futures Surge Higher at Midday Firm buyer support entered the cattle market Monday morning which offset the lackluster activity through the rest of the complex. Buyer support may continue to develop in all cattle trade. By Rick Kment DTN Livestock Analyst GENERAL COMMENTS: Sluggish activity in cattle markets through most of the morning has been offset by renewed buyer support quickly and aggressively moving back into the market. It is uncertain if this buyer interest is deep enough to continue the firm support, but the focus on smaller show lists seem to be helping drive buyer support. Corn prices are higher in light trade. March corn futures are 2 cents higher. Stock markets are mixed in light trade. The Dow Jones is 38 points lower while Nasdaq is up 19 points. LIVE CATTLE: Early pressure through the live cattle markets was limited to narrow losses. But buyer support quickly stepped into the market at midday. This is helping to push nearby contracts firmly higher with renewed support seen through the entire complex. Cash cattle markets remain quiet Monday, which is not unusual for this time of week. Show lists are smaller as a whole with overall lack of offering by feeders limiting the overall supply but still not expected to draw activity into the cash markets until midweek or later. Asking prices are undeveloped at this point, as packers are expected to remain short bought, but still unwilling to chase prices higher at this point. Beef cut-outs at midday are mixed, $0.43 higher (select) and down $1.11 per cwt (choice) with light movement of 78 total loads reported (42 loads of choice cuts, 15 loads of select cuts, zero loads of trimmings, 21 loads of ground beef). FEEDER CATTLE: Firm gains have developed in feeder cattle futures at midday following a bounce higher in live cattle trade. The overall lack of direction in the complex continues to bring about additional price support through the complex, and may help to spark additional interest across the market. The week may remain volatile through the next couple of trading sessions based not only on beef values, but the direction of futures interest in all cattle markets. LEAN HOGS: Mixed trade is still developing through the lean hog futures complex with traders in February contracts holding the most aggressive losses. Even though prices have pulled back from initial lows, the pressure continues to hold as February futures are currently 95 cents lower. Light gains are holding in June through December contracts, but this is not enough to spark buyer support through the rest of the market. Cash prices are lower on the National Direct morning cash hog report. The weighted average price fell $0.87 at $54.40 per cwt with the range from $53.86 to $57.00 on 3,264 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 173 loads selling with prices gaining $1.90 per cwt. Lean hog index for 1/5 is at $57.69 up $0.08 with a projected two-day index of $58.85 up $1.16. Rick Kment can be reached at rick.kment@dtn.com (ES) Copyright 2017 DTN/The Progressive Farmer. All rights reserved.