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DTN Midday Livestock Comments          01/15 12:09

   Cattle Futures Rally Higher

   Strong morning gains have redeveloped in livestock futures with spot live 
cattle contracts once again setting new contract highs as technical support is 
redeveloping across the complex.

By Rick Kment
DTN Analyst

General Comments

   Livestock futures are showing strong buyer support with nearby live cattle 
and lean hog futures leading the complex higher as commercial support is moving 
back into the complex. Corn markets are lower in light trade. March corn 
futures are 6 cents lower. Stock markets are higher in light trade. Dow Jones 
is 149 points higher with Nasdaq up 112 points. 

   LIVE CATTLE:

   Strong triple-'digit gains have redeveloped in front month February futures, 
moving prices to new contract highs once again. This move higher has pushed 
prices to the highest level since February 2018 in the continuous price chart, 
as traders continue to focus on underlying buyer activity and firming spring 
demand through the complex. The ability to move nearby contracts sharply higher 
has spilled over to all contract with deferred futures steady to 20 cents per 
cwt higher at midday. Cash interest remains sluggish with bids and asking 
prices still hard to pin down. It is expected that most cash business will be 
pushed to the end of the week, although more activity from packers could start 
to develop midweek. Boxed Beef cut-outs at midday are higher, $0.71 higher 
(select) and up $0.56 per cwt (choice) with light movement of 88 total loads 
reported (56 loads of choice cuts, 14 loads of select cuts, 4 loads of 
trimmings, 13 loads of ground beef).

   FEEDER CATTLE:

   Strong buyer support has followed the renewed buyer support in live cattle 
trade Tuesday morning as increased buyer activity has quickly swept thrugh the 
entire cattle market. January feeder cattle trade remains steady, while tight 
trading ranges have redeveloped through the rest of the complex, moving prices 
50 to 70 cents per cwt higher. The potential to focus on firm short term demand 
is helping to bring additional support back into the complex, driven by March 
futures, holding a 70 cent gain.

   LEAN HOGS:

   Firm buyer support has flooded through the entire lean hog complex with 
February futures leading the move higher with an 82-cent rally. Traders have 
slowly backed away from initial triple digit gains, although the tone of the 
market is firming following increased volume moving into the complex. Cash 
prices are lower on the National Direct morning cash hog report. The weighted 
average price is down $0.24 at $51.51 per cwt with the range from $47.00 to 
$52.50 on 3,293 head reported sold. Cash prices lower on the Iowa/Minnesota 
Direct morning cash hog report. The weighted average price is down $0.23 at 
$51.94 per cwt with the range from $47.00 to $52.50 on 670 head reported sold. 
Pork carcass values are higher on the morning report with prices gaining $1.19 
per cwt at $72.38 per cwt with 242 loads traded. Lean hog index for 1/09 is 
$55.99, up 0.89, with a projected two-day index is $56.69, up 0.70. 

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


(CZ)

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