DTN Midday Livestock Comments 12/15 12:03

DTN Midday Livestock Comments 12/15 12:03 Cattle Contracts Reverse from Early-Session Lows Live and feeder futures are mostly higher at midday, reversing from early session lows with the help of short covering and ideas of cash stability. On the other hand, lean hog contracts have generally eroded through the morning with nearby issues catching most of the selling interest. By John Harrington DTN Analyst GENERAL COMMENTS: Packer inquiry in feedlot country is light to moderate at midday with bids in the South ranging from $117-118. While asking prices are not well defined, some producers are pricing cattle at $122 or better in Kansas and Texas. The Northern tier of feeding country is dead quiet. According to the midday report, the Iowa hog base is 0.12 lower compared with the Prior Day settlement ($48.50-52.00, weighted average $51.11). Corn futures are fractionally lower near the top of the noon hour in light trading. The stock market is on a decent march near midday, helped by some stabilization in oil prices, as investors awaited the Federal Reserve's decision on rates due at the conclusion of its two-day meeting Wednesday afternoon. The Dow is 251 points higher at the time with the Nasdaq in the black by 73. LIVE CATTLE: After struggling with follow-through selling earlier this morning, live issues are staging a solid reversal in late morning biz. Dec-April are holding triple digit gains, supported by short covering, outside markets, and new ideas of cash stability. Is this just another flash in the bearish pan? Only time will tell. Beef cut-outs are widely mixed at midday, up $2.42 (select, $189.15) to off $1.14 (choice, $197.64) with light box movement (54 loads of choice cuts, 18 loads of select cuts, zero loads of trimmings, 11 loads of coarse grinds). FEEDER CATTLE: Feeders are trying to turn the corner along with their live counterparts. Prices are mixed near midday with nearbys well above extreme lows posted in the early ground. This may be nothing more than momentary short covering. LEAN HOGS: Lean hog contracts remain under pressure at midday with new spot Feb struggling with triple-digit losses. With the cash index still trading water in the mid $50s as slaughter numbers continue to wash in with higher than expected waves, it may be tough for Feb to hold above $60 this early in the winter. The carcass value at midday is moderately lower, pressured by softer sales of fresh cuts and bellies. Pork cut-out: $74.16, off 0.45. CME cash lean 12/11: 55.98, off 0.42 (DTN Projected lean index for 12/14: 55.90, off 0.08). John A. Harrington can be reached at john.harrington@dtn.com (BAS) Copyright 2015 DTN/The Progressive Farmer. All rights reserved.