DTN Midday Livestock Comments 01/26 12:08

DTN Midday Livestock Comments 01/26 12:08 Livestock Futures Look Mixed Near Midday The cattle complex near the top of the noon hour is mixed in the live market and moderately higher in the feeder trade. Lean hog futures are mostly higher with just token red ink evident in the far deferreds. By John Harrington DTN Livestock Analyst GENERAL COMMENTS: The cash cattle trade remains a non-event so far today with both bids and asking prices difficult to find. We have heard some asking prices in the South around $136-$138. Serious negotiations will probably be postponed until Thursday or Friday. According to the midday report, the national hog base is $0.24 lower compared with the Prior Day settlement ($50.00-58.25, weighted average $55.82). Corn futures are modestly higher on light volume, supported somewhat by outside markets. The stock market is trying to put its act back together with the help of recovering oil prices. The Dow is 290 points higher at this time with the Nasdaq better by 56. LIVE CATTLE: Although price action here has been somewhat choppy through the morning, live contracts are mostly higher near midday. Today's recovery seems tied to a combination of short-covering, premium feedlot sales and Wall Street's better tone. Beef cut-outs are mixed at midday, up $0.81 (choice, $224.60) to off $1.17 (select, $217.77) with light box movement (36 loads of choice cuts, 22 loads of select cuts, zero loads of trimmings, seven loads of coarse grinds). FEEDER CATTLE: Feeder contracts are moderately higher moving toward the noon hour. Most of the buying seems tied to spillover sentiments from the live market. Given the discount of the cash index, feeders would seem to be more vulnerable than their live counterparts to negative outside news or awkward fundamentals. Yet, today, the opposite seems to be true. LEAN HOGS: For the most part, lean futures are holding moderate gains at midday. Nearbys seem particularly well supported thanks to bull-spreading interest and ideas of improving fundamentals pretty much through the balance of the winter. Carcass value is sharply higher at midday with all primals trending higher except the belly. Pork cut-out: $76.76, up $1.18. CME cash lean 01/22: $58.37, up $0.53 (DTN Projected lean index for 01/25: $58.77, up $0.40). John A. Harrington can be reached at john.harrington@dtn.com (ES) Copyright 2016 DTN/The Progressive Farmer. All rights reserved.