DTN Livestock Midday: Futures Rally Higher

©Debra L Ferguson Stock Photography

Strong buyer support has quickly developed through the market Monday. This is helping to bring additional trade back to the table, with triple-digit gains seen in cattle and hog futures.

GENERAL COMMENTS:

Strong gains have quickly developed across most livestock trade with triple-digit support helping to bring increased activity to the complex. This may add even more support to the market during the early part of the week.

Corn prices are higher in light trade. March corn futures are 4 cents lower Friday. Stock markets are higher in active trade. The Dow Jones is 383 points higher while Nasdaq is up 95 points.

LIVE CATTLE:

Strong gains have quickly moved into live cattle trade although the long term direction of the market has remained generally unchanged. The potential to spark some additional underlying support may bring increased volume to the market through not only the rest of the day, but early part of the week. This could help to bring a sense of stability back to the entire cattle complex which has been missing over the last few trading sessions.

Cash cattle interest is undeveloped with traders focusing on the light trade seen last week. Show list distribution and inventory taking is the only evidence of activity. Trade may be pushed off to midweek or later, although packers appear to be short bought.

Boxed Beef cut-outs at midday are higher, $1.77 higher (select) and up $1.50 per cwt (choice) with light movement of 55 total loads reported (27 loads of choice cuts, 11 loads of select cuts, 10 loads of trimmings, 7 loads of ground beef).

FEEDER CATTLE:

Triple-digit gains have quickly moved back into the market. There is growing support in all livestock trade, but feeder cattle futures have posted increased underlying support. The potential to bring increased trade volume to the market could add even more support over the near future.

LEAN HOGS:

Strong buyer support has flooded into the complex at midday with gains seen $1 to $1.80 per cwt during late morning. The focus on commercial buyers stepping back into the market has sparked underlying support. Gains in cattle trade has also helped to spark some renewed buyer activity through the entire market.

Cash prices are lower on the National Direct morning cash hog report. The weighted average price is down $0.92 at $68.56 per cwt with the range from $61.00 to $70.50 on 3,475 head reported sold.

Cash prices are lower on the Iowa/Minnesota Direct morning cash hog report. The weighted average price is down $0.99 at $69.08 per cwt with the range from $61.00 to $70.50 on 625 head reported sold.

The National Pork Plant Report posted 129 loads selling with carcass values adding $1.27 per cwt. Lean hog index for 2/7 is at $75.63, up 0.25 with a projected two-day index of $75.38, down 0.25.

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