DTN Midday Livestock Comments 12/02 12:14

DTN Midday Livestock Comments 12/02 12:14 Extreme volatility continues to dominate live and feeder futures The cattle complex is sharply lower near midday, once again pressured by long liquidation and technical selling. Lean hog futures are moderately lower, checked by profit taking and spillover selling from live and feeder contracts. By Rick Kment DTN Analyst GENERAL COMMENTS: Packer inquiry in feedlot country is light to moderate at midday, though bids are nothing to shout about (e.g., $195 dressed in the North, $125-126 live in the South). Some asking prices have been suggested around $131-132 in the South and $200-plus in the North. According to the midday report, the national hog base is $1.19 lower compared with the Prior Day settlement ($48.00-$53.00, weighted average $50.48). Corn futures are generally 3 cents higher near the top of the noon hour, supported by weakness in the wheat market and a basic lack of bullish arguments. The stock market is mixed near midday with the Dow off 30 points and the Nasdaq up 9. LIVE CATTLE: While live issues opened only moderately lower, selling energy has intensified all morning long. Contracts are now mostly 237 to 300 points in the red with Dec and Feb locked down the limit. This market continues to be extremely volatile, perhaps reflect great uncertain regard fundamentals over the winter quarter ahead. Beef cut-outs are higher at midday, up .13 (select, $192.82) to .95 (choice, $204.76) with light to moderate box movement (43 loads of choice cuts, 21 loads of select cuts, 4 loads of trimmings, 22 loads of coarse grinds). FEEDER CATTLE: Feeders are imploding along with live contracts. At this time, issues are generally 370 to 402 lower. Aggressive selling is fueled by long liquidation, technical bearishness, and a near complete lack of commercial buying interest. LEAN HOGS: Lean hog futures are moderately lower at this time, off 15 to 80 points. The slide certainly seems manageable compared with the ongoing rout in cattle. Midday selling seems pretty much explainable in terms of profit taking and spillover selling from the live and feeder trades. Carcass value at midday is stronger, girded by better demand for fresh cuts as well as butts and picnics. Pork cut-out: $73.73, up 0.72. CME cash lean 11/30: 55.54, off 0.08 (DTN Projected lean index for 12/01: 55.81, up 0.27). (BAS) Copyright 2015 DTN/The Progressive Farmer. All rights reserved.