DTN Midday Livestock Comments 01/19 11:57

DTN Midday Livestock Comments 01/19 11:57 Cattle Futures Rally on Cash News Moderate to strong gains developed once again across the cattle complex. Moderate trade is starting to develop in the South with live trade pegged at $122 per cwt. This is drawing firm fundamental support through the entire complex. By Rick Kment DTN Livestock Analyst GENERAL COMMENTS: Strong buyer support has moved into the cattle complex midday Thursday following the development of higher cash cattle trade through the South. Even though dressed trade is still undeveloped, the expectations of higher cash market activity have clearly been set. This could help to bring additional support back into the cattle market through the end of the week. Hog futures remain mixed to mostly higher. The most significant support is seen in late 2017 contracts. Corn prices are higher in light trade. March corn futures are 1 1/2 cent higher. Stock markets are lower in light trade. The Dow Jones is 41 points lower while Nasdaq is down 6 points. LIVE CATTLE: Moderate to strong gains are seen through the entire live cattle futures market and the driver of this renewed support is the development of higher cash cattle trade through the week. Front month February live cattle futures are currently leading the market higher with gains of 80 cents per cwt. This has pushed the February contracts above $121 per cwt. A close above this level would indicate the potential development of follow through activity stepping into the complex at the end of the week. Cash cattle trade is starting to develop midday Thursday with trade seen in both the North and South on live basis priced at $122 per cwt. This is generally $3 per cwt higher from last week's levels. Dressed trade is still undeveloped, but bids are seen through the morning ranging from $188 early to $195 late morning. This is expected to spark some trade volume through the next several hours and likely wrap needed activity up for the week. Asking prices remain at $122 in the South and $195 in the North, but may be adjusting higher given the aggressive bids. Beef cut-outs at midday are lower, $0.18 lower (select) and down $0.89 per cwt (choice) with light movement of 64 total loads reported (42 loads of choice cuts, 9 loads of select cuts, no loads of trimmings, 14 loads of ground beef). FEEDER CATTLE: Initial pressure seen in feeder cattle markets early Thursday morning has been offset by moderate to strong gains. January futures are leading the complex higher with support of $1 per cwt developing at midday. This may help to bring about additional longer term support into the complex, but the gains in cash trade continue to be leading the cattle market at this point. LEAN HOGS: Light to moderate buyer support is trickling into the lean hog futures complex as the firmness seen across the cattle market has helped to wash away seller pressure which developed through most of the morning. This is pushing front month February futures 25 cents per cwt higher at midday. Although prices still remain mixed, the general tone of the market is firming with deferred gains of 50 to 70 cents per seen through the end of 2017. There may be some additional support seen near closing bell based on outside market support. Cash prices are lower on the National Direct morning cash hog report. The weighted average price fell $0.75 at $61.59 per cwt with the range from $58.00 to $63.25 on 4,868 head reported sold. Cash prices are lower on the Iowa Minnesota Direct morning cash hog report. The weighted average price fell $1.18 at $62.15 per cwt with the range from $58.00 to $63.25 on 2,148 head reported sold. The National Pork Plant Report reported 208 loads selling with prices gaining $0.71 per cwt. Lean hog index for 1/17 is at $66.01 up $1.17 with a projected two-day index of $66.69 up $0.68. Rick Kment can be reached at rick.kment@dtn.com (ES) Copyright 2017 DTN/The Progressive Farmer. All rights reserved.