DTN Midday Livestock Comments 01/10 12:07

DTN Midday Livestock Comments 01/10 12:07 Futures Surge Higher Midday Sharp triple-digit gains flooded into the cattle complex as traders remain focused on bullish market support through early January. The expectation that strong demand support will continue as more interest is being moved to supply tightness during 2017. By Rick Kment DTN Livestock Analyst GENERAL COMMENTS: Strong triple-digit gains in cattle futures have posted strong underlying support through the entire complex. Additional support may continue to develop across the market with bullish undertones developing. Corn prices are lower in light trade. March corn futures are 2 cents lower. Stock markets are higher in light trade. The Dow Jones is 44 points higher while Nasdaq is up 25 points. LIVE CATTLE: Sharp triple-digit gains are holding across all nearby live cattle futures. The surge in front month February futures above $2 per cwt gains has pushed nearby contracts near $119 per cwt with the focus on breaking through resistance levels set at the end of last year. This could bring about not only additional buyer support, but sharply higher activity through the entire complex. Cash cattle markets are extremely quiet Tuesday morning with bids undeveloped and asking prices still remaining extremely quiet at this point also. It is expected that most trade will be delayed until the end of the week, although the expectation of higher prices continues. Beef cut-outs at midday are lower, $1.04 lower (select) and down $1.68 per cwt (choice) with light movement of 72 total loads reported (39 loads of choice cuts, 12 loads of select cuts, 12 loads of trimmings, 10 loads of ground beef). FEEDER CATTLE: Buyer support has continued to develop through the morning. Nearby contracts are holding gains from $2 to $3 per cwt as the overall momentum based on expected supply tightness and recent strong buyer support is helping to draw additional trader activity into the market. March futures are leading the market higher with a $3 per cwt gain at midday, as the renewed activity has moved through short-term resistance levels. A close at current price levels would likely spark additional bullish momentum through the rest of the week. LEAN HOGS: Strong gains have developed in front-month February lean hog futures following the aggressive support in the cattle complex. But beyond the higher front month contract move, the remainder of hog trade remained sluggish in a quiet move with very little direction developing across all contract months. Mixed trade is expected to hold through the end of the session with very little additional information available for traders to watch. Cash prices are higher on the National Direct morning cash hog report. The weighted average price added $1.57 at $57.95 per cwt with the range from $53.75 to $60.00 on 11,621 head reported sold. Cash prices are higher on the Iowa Minnesota Direct morning cash hog report. The weighted average price added $0.85 at $58.94 per cwt with the range from $53.75 to $60.00 on 4,925 head reported sold. The National Pork Plant Report reported 200 loads selling with prices falling $0.07 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.