DTN Midday Livestock Comments 10/13 11:58

DTN Midday Livestock Comments 10/13 11:58 Hog Futures Well Supported at Noon by Generally Positive Fundamentals Lean hog contracts are higher near the top of the hour with front months well supported by bull spreaders. The cattle complex is mixed in the live trade and mostly higher in the feeder market. By John Harrington DTN Analyst GENERAL COMMENTS: Feedlot country is as quiet as a church on Sunday afternoon. Both bids and asking prices remain poorly defined as traders cautiously watch the advance of futures and boxed beef. According to the midday report, the national hog base is 0.59 higher compared with the Prior Day settlement ($65.00-$73.00, weighted average $70.54). The corn market is 1-2 cents higher moving toward the noon hour, supported by short covering and spillover buying from the bean trade. The stock market is marginally higher near midday as some gains in oil prices offset fresh indications of slowdown in China's economy. The Dow is 20 points higher at this time with the Nasdaq better by 3. LIVE CATTLE: Spot October is holding gains of 50 points or more at midday, but the balance of the market is moderately lower. Firming cash prospects (e.g., note the big jump in cut-outs) are encouraging support of the lead contract and the popularity of bull spreading. Beef cut-outs are sharply higher at midday, up $2.63 (choice, $207.93) to $4.16 (select, $203.28) with light box movement (39 loads of choice cuts, 33 loads of select cuts, 8 loads of trimmings, 11 loads of coarse grinds). FEEDER CATTLE: Feeder issues are moderately higher for the most part in light trade volume. While the recent improvement in psychology is helpful, commercial buying interest remains measured given the persistence of ugly feedlot margins. LEAN HOGS: Mindful that it will soon take the spot position, discounted December is enjoying triple-digit gains at midday, gaining both on October and the far deferred. Nevertheless, most lean issues are holding black ink as we move into the noon hour. Look for yesterday's kill to be revised down thanks to mechanical problems at Smithfield's plant at Tar Heel. We understand packers will make up for lost time by planning a larger Saturday kill, perhaps as busy as 170,000 head. Carcass value is significantly lower at midday, checked by cheaper cuts of loins, picnics, ribs, and hams. Pork cut-out: $88.30, off $1.17. CME cash lean 10/09: 74.77, off 0.07 (DTN Projected lean index for 10/12: 74.85, up .08). John Harrington can be reached at feelofthemarket@yahoo.com Follow John Harrington on Twitter @feelofthemarket (BAS) Copyright 2015 DTN/The Progressive Farmer. All rights reserved.