DTN Midday Livestock Comments 12/09 12:16

DTN Midday Livestock Comments 12/09 12:16 Cattle Futures Rally Monday Morning Moderate to strong support developed in nearby live cattle futures as traders returned from the weekend break. Triple-digit gains are seen in winter contracts, which is helping to rekindle nearby buyer support. Rick Kment DTN Analyst GENERAL COMMENTS: Live cattle futures have quickly become the market leader Monday morning with firm triple-digit gains holiday in nearby live cattle trade, which is helping to spark firmness through the entire cattle complex early in the week. The focus on strong beef values in the lightly traded, but higher boxed beef report, as well as limited market direction in outside markets, is helping to align the cattle traders currently in the market. Light to moderate pressure in lean hog trade seems to be the focus -- a pullback in cash values in the lightly traded Monday market, but trades still remain focused on the firm support seen across the complex over the past three months. March corn is up 1 1/2 at $4.415 and January soybean meal is up $1.60 at $289.00. The Dow Jones Industrial Average is down 62.37 at 44,580.15. LIVE CATTLE: Strong early gains quickly developed in nearby live cattle futures Monday morning. The underlying support across the complex is helping to stimulate triple-digit gains in December and February futures, although overall volume is expected to remain extremely light. The uncertainty about the depth of buyer support at current or higher price points is becoming a question, which could lead to late day volatility across much of the live cattle complex. This volatility could be more significant in deferred contract months. Cash cattle markets remain quiet with asking prices and bids still yet to be established. It is likely to be midweek or later before active interest and potential cash market sales develop. The direction of beef values and futures trade may have a significant impact in cash trade this week. With cash cattle trade last week generally steady to $2 per cwt higher, traders are looking for additional support heading into the upcoming holiday season. December live cattle are $1.35 higher at $188.725; February live cattle are $1.63 higher at $187.8; and April live cattle are $0.93 higher at $189.225. Boxed beef prices are higher: choice up $2.27 ($314.31) and select up $2.60 ($279.33) with a movement of 43.71 loads (25.99 loads of choice, 7.55 loads of select, zero loads of trim and 10.17 loads of ground beef). FEEDER CATTLE: Feeder cattle futures continue to show steady support early Monday morning, with midday prices holding moderate gains in the nearby contract. May futures have inched above $1 per cwt gains, as follow through buying support has continued to slowly, but steadily develop during early week trade. The general lack of direction in grain trade through the morning, as well as strong triple-digit gains in nearby live cattle futures is helping stimulate moderate to firm buyer activity to spill over through the feeder cattle complex. Although there will continue to be some focus on cash feeder cattle trade in the week's auction markets, the reality is that end of the year and holiday schedules will have a significant impact on overall volume and general cash market trends until early to mid-January. January feeders are $0.53 higher at $256.35; March feeders are $0.70 higher at $255.375; and April feeders are $0.80 higher at $256.375. LEAN HOGS: Lean hog markets posted moderate losses early Monday morning as traders focused on generally sluggish trade activity in nearby contract months, as well as generally stable markets shifts in grain trade early in the week. The majority of trade emphasis is placed on spring and early summer market direction with underlying questions of overall demand growth and supply levels of pork through the first half of 2025. With June futures still holding price levels above $100 per cwt, the continued focus of market growth for long-term demand is helping to sustain a strong underlying support of buyer interest. December lean hogs are $0.35 lower at $82.95; February lean hogs are $0.50 lower at $86.825; and April lean hogs are $0.60 lower at $91.25. Hog prices are lower on the Daily Direct Morning Hog report, down $5.97 with a weighted average of $82.43, ranging from $76.00 to $84.00 on 346 head with a five-day rolling average of $87.47. Pork cutouts totaled 220.32 loads with 188.87 loads of pork cuts and 31.45 loads of trim. Pork cutout values are up $2.02 at $93.18. (c) Copyright 2024 DTN, LLC. All rights reserved.