Firm gains have quickly developed in cattle trade midday Thursday following lackluster early moves and the potential to limit follow through buyer support through the end of the week. These higher prices could help to spark additional longer-term activity not only through the end of 2017, but carry the momentum well into January. Corn prices are lower in light trade. March corn futures are 3 cents lower Thursday. Stock markets are higher in light trade. The Dow Jones is 30 points higher while Nasdaq is up 7 points.
LIVE CATTLE:
Aggressive buying support first developed in front month December contracts Thursday morning. Although volume remained light and the lightly traded spot month contract brought little overall activity to the market, this set the tone for increased buyer support in all markets. Spring contracts are now trading with triple-digit gains at midday which is helping to draw additional strong buyer support into the entire market. Cash cattle bids have started to develop through the morning Thursday with live cattle bid at $118 per cwt while dressed bids currently stand from $188 to $192 per cwt. The interest still remains generally light, although the support in futures trade could allow for trade to develop before the end of the day. Asking prices remain from $122 to $125 live basis, and $195 and higher dressed. Boxed Beef cut-outs at midday are higher, $0.26 higher (select) and up $0.73 per cwt (choice) with light movement of 81 total loads reported (44 loads of choice cuts, 23 loads of select cuts, 9 loads of trimmings, 5 loads of ground beef).
FEEDER CATTLE:
Feeder cattle futures have posted strong upward market support midday Thursday following the surge in live cattle futures during the morning. This has allowed for triple-digit gains in most nearby contracts ranging from $1 to $1.50 per cwt. The ability to pull traders back into the market ahead of the holiday weekend could spark some increased strong buyer activity to develop during early January.
LEAN HOGS:
Despite moderate back and forth through the lean hog complex Thursday morning, lean hog futures are mixed in a narrow to moderate range. This overall lack of direction in the market could allow for traders to focus on sluggish market activity through not only the rest of the session but the rest of the week. Cash prices are higher on the National Direct morning cash hog report. The weighted average price is up $0.02 at $57.36 per cwt with the range from $54.00 to $58.05 on 4,510 head reported sold. Cash prices are unreported due to confidentiality on the Iowa/Minnesota Direct morning cash hog report. The National Pork Plant Report posted 142 loads selling with carcass values gaining $0.03 per cwt. Lean hog index for 12/26 is at $61.59 down $0.03 with a projected two-day index of $61.58, down $0.01.
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