DTN Midday Livestock Comments

GENERAL COMMENTS:

Livestock futures have regained buyer support midmorning following a choppy but mixed trade range through early morning trade. This could help bring additional support back to the market over the next couple of days. Corn prices are lower in light trade. March corn futures are 2 cents lower. Stock markets are lower in light trade. The Dow Jones is 20 points lower while Nasdaq is down 8 points.

LIVE CATTLE:

Live cattle futures are holding light to moderate gains after trading on either side of unchanged through most of the morning. Light trade remains seen in most contracts which is holding prices 30 to 50 cents per cwt higher. This support may continue to help draw buyer activity back into the market through the early part of the week as traders try to build some stability back into the cattle market following losses over the past week. Cash cattle markets are quiet with show lists reported mostly lower. The overall lack of activity in the market is not unexpected as bids are not likely to develop until near midweek. Beef cut-outs at midday are higher, $0.29 higher (select) and up $0.65 per cwt (choice) with light movement of 41 total loads reported (24 loads of choice cuts, 8 loads of select cuts, no loads of trimmings, 9 loads of ground beef).

FEEDER CATTLE:

Feeder cattle futures have bounced higher and lower throughout the morning with prices now regaining market support based on the slight gains in beef values and lackluster support in outside markets. The feeder cattle market is being led higher by buying support in summer contracts which are now trading 70 cents higher. This has quickly brought buyers back to the table and helping to bring some moderate support back into front month futures.

LEAN HOGS:

Strong buyer support has continued to hold through lean hog futures Monday morning with nearby contracts posting 60 to 80 cent gains. This has pushed February and April futures above $71 per cwt, which is drawing additional buyer support back to the complex. Traders continue to focus on the strong demand for pork and expectations that this will continue to hold through the spring and summer in order to spark longer term buyer activity in the market. Cash prices are lower on the National Direct morning cash hog report. The weighted average price fell $0.82 at $66.06 per cwt with the range from $62.00 to $69.50 on 4,138 head reported sold. Cash prices are higher on the Iowa Minnesota Direct morning cash hog report. The weighted average price added $1.01 at $69.17 per cwt with the range from $62.00 to $69.50 on 908 head reported sold. The National Pork Plant Report reported 145 loads selling with prices gaining $1.55 per cwt. Lean hog index for 2/2 is at $70.30 up $0.67 with a projected two-day index of $70.95 up $0.65.

Rick Kment can be reached at rick.kment@dtn.com

(ES)

Copyright 2017 DTN/The Progressive Farmer. All rights reserved.