DTN Midday Livestock Comments 05/08 12:12

DTN Midday Livestock Comments 05/08 12:12 Livestock Futures Firm Monday on Strong Cattle Gains Triple-digit cattle gains have developed late Monday morning. This move following the late Friday losses is adding volatility to the complex but bringing buyers back to the market. By Rick Kment DTN Analyst GENERAL COMMENTS: Aggressive midday buyer activity is moving into live cattle and feeder cattle trade as futures are holding triple-digit gains. This is sparking increased buyer support in most areas and could expand the price levels in most contract months through much of the complex Monday afternoon. Corn prices are lower in light trade. July corn futures are 5 cents lower. Stock markets are mixed in light trade. The Dow Jones is 5 points higher while Nasdaq is down 6 points. LIVE CATTLE: Light to moderate pressure is holding in front-month June futures, although the rest of the complex is gaining momentum as triple digit buyer support has moved back into the complex. The bullishness of the cattle market and strong upward shift seen in feeder cattle futures is helping to bring traders back to the table following the limit losses Friday. The potential for increased buyer support in the last hour of trade could set the tone for increased activity through the rest of the week. Cash cattle activity remains undeveloped with show lists mixed from last week's levels. It is likely that active bids may be delayed until midweek or later. Beef cut-outs at midday are higher, $1.97 higher (select) and up $1.61 per cwt (choice) with light movement of 41 total loads reported (24 loads of choice cuts, 12 loads of select cuts, no loads of trimmings, 5 loads of ground beef). FEEDER CATTLE: Sharp buyer support has quickly redeveloped across all feeder cattle trade with buyers moving prices higher during the morning. Triple-digit gains are holding at midday with front month May futures holding a $4 per cwt rally. Extended trading limits are in place allowing prices to expand beyond the normal $4.50 per cwt price levels, which could easily come into play through the last hour of trade Monday. LEAN HOGS: Light to moderate buyer support has continued to slowly develop through morning trade with June lean hog futures leading the complex higher with a 75 cent per cwt rally. The move higher helped to push contracts above $77 per cwt and spark additional fundamental and technical support back into the complex. This may draw additional underlying support back into the market over the rest of the Monday trading session, sparking increased buyer support through the rest of the week. Cash prices are higher on the National Direct morning cash hog report. The weighted average price added $0.54 at $64.78 per cwt with the range from $63.47 to $67.00 on 4,530 head reported sold. Cash prices are higher on the Iowa Minnesota Direct morning cash hog report. The weighted average price added $1.58 at $66.70 per cwt with the range from $63.50 to $67.00 on 1,830 head reported sold. The National Pork Plant Report reported 107 loads selling with prices added $0.83 per cwt. Lean hog index for 5/3 is at $62.24 down $1.10 with a projected two-day index of $63.55 down $1.31. Rick Kment can be reached at rick.kment@dtn.com (ES) Copyright 2017 DTN/The Progressive Farmer. All rights reserved.