DTN Midday Livestock Comments 01/13 11:58

DTN Midday Livestock Comments 01/13 11:58 Triple-Digit Gains Flood Into Cattle Futures Late-week support quickly developed in cattle markets Friday afternoon. This has pushed live cattle and feeder cattle markets triple digits higher, with the potential for additional support holding into next week. By Rick Kment DTN Livestock Analyst GENERAL COMMENTS: Strong gains have quickly developed in cattle futures at midday with the most contracts holding triple-digit gains despite early morning pressure. Lean hog futures are mixed in a narrow range. The focus on markets remaining closed Monday is putting more emphasis on Friday's trade movements, even though volume remains light. Corn prices are lower in light trade. March corn futures are 1 cent lower. Stock markets are mixed in light trade. The Dow Jones is 18 points lower while Nasdaq is up 30 points. LIVE CATTLE: Strong triple-digit gains have quickly moved into the live cattle futures complex at midday Friday as traders try to square positions in front of the long holiday weekend. The firmness in beef values at the end of the week gives signs that support may be redeveloping across the complex. Nearby futures are holding $1 to $1.30 per cwt gains at midday, although trade volume remains extremely sluggish with most traders already out of the complex. But the ability to close February futures above $118.50 per cwt for the week would likely help draw additional attention to the market through early next week. Cash cattle markets remain undeveloped at midday Friday, with just a few scattered bids redeveloping at previous price levels. Bids are available at $116 in the South and $186 in the North, with the expectation that trade will develop sometime through the afternoon. Asking prices are holding at $120 and higher in the South and $190 in the North. Beef cut-outs at midday are higher, $0.38 higher (select) and up $1.34 per cwt (choice) with light movement of 63 total loads reported (34 loads of choice cuts, 21 loads of select cuts, 1 load of trimmings, 7 loads of ground beef). FEEDER CATTLE: Strong gains have developed across most feeder cattle futures at midday despite the overall lack of market direction through most of the morning. Traders have moved into a position-squaring attitude with short covering developing after sharp losses developed over the last couple of trading sessions. There may be some additional market shifts in the late minutes of trade, but overall trade volume is slowing significantly ahead of the weekend break, which may allow prices to close firmly higher. LEAN HOGS: Lean hog futures continue to be stuck in a narrowly mixed trading range with prices hovering from 30 cents lower to 30 cents higher during late morning. The inability to draw firmer cash market support in the morning report was offset by the aggressive surge in pork values. Trade volume in the lean hog complex remains at a near standstill, although there is likely to be some aggressive open interest gains once again Friday similar to the support seen through the week. With markets closed Monday, it is likely that many traders are focusing on the late-Friday moves to square positions ahead of the weekend. Cash prices are higher on the National Direct morning cash hog report. The weighted average price fell $0.99 at $60.21 per cwt with the range from $58.33 to $62.00 on 3,045 head reported sold. Cash prices are lower on the Iowa Minnesota Direct morning cash hog report. The weighted average price fell $1.63 at $60.83 per cwt with the range from $58.33 to $62.00 on 1,005 head reported sold. The National Pork Plant Report reported 137 loads selling with prices adding $2.83 per cwt. Lean hog index is unreported at this time. Rick Kment can be reached at rick.kment@dtn.com (ES) Copyright 2017 DTN/The Progressive Farmer. All rights reserved.