DTN Midday Livestock Comments 10/19 12:10
Cattle Futures Staged Moderate Losses at Midday
The cattle complex is moderately lower near the top of the noon hour as
traders engage in long liquidation prior to the development of cash news and
late week on feed numbers. At the same time, lean hog futures are narrowly
mixed with nearby issues modestly higher.
By John Harrington
Feedlot country remains untested at midday with just a few scattered bids
reported across the area ($109-110 in the South; $l09/$172-173 in the South).
Asking prices are around $112-plus in the South and $175-plus in the North. It
looks like we're in for another eleventh hour showdown sometime Friday.
According to the midday report, the national hog base is 0.54 lower
($57.50-63.00, weighted average $61.86). The corn market is 1-2 cents lower
near the top of the noon hour as prices continue to bang around in a narrow
trading range. Equities are generally lower at midday with the Dow off 36
points and the Nasdaq down by 45.
Live cattle issues seem to be sagging near midday (off 45 to 70 points),
even though action has been on the choppy side for most of the morning. The
slow way the cash market is developing this week has drained aggressive buying
interest here (at least for the moment).
Some of the long liquidation may be tied to nervousness in the face of
tomorrow's on feed report which many fear will confirm yet another round of
larger placement activity. Beef cut-outs are solidly higher at midday, up .50
(choice, $197.76) to $1.34 (select, $190.43) with light to moderate box
movement (39 loads of choice cuts, 19 loads of select cuts, 4 loads of
trimmings, 13 loads of coarse grinds).
Following the defensive lead of live issues, feeder futures also look
moderately lower as traders move into the final hour of market business.
Currently, prices are 10-40 lower. Again, the premium status of the cash index
should work as brakes on any expended sell-off.
Although lean hog issues started the day with a decent head of steam, buying
interest has cooled near midday. At the time, contracts are no better than
narrowly mixed, up 5 to off 55. The rising cash index is understandable lending
more support to nearby issues than their deferred counterparts. The carcass
value at midday is essentially steady as higher loin sales offset softer ham,
picnic, and belly biz. Pork cut-out: $73.93, up .05. CME cash lean index for
10/17: 62.21, up 1.21 (DTN Projected lean index for 10/18: 63.34, up 1.13).
John A. Harrington
Copyright 2017 DTN/The Progressive Farmer. All rights reserved.
For more free DTN information sent right to your email each morning - click here
to sign up for DTN Snapshot.