DTN Midday Livestock Comments 01/27 11:20

DTN Midday Livestock Comments 01/27 11:20 Cattle Futures Score Solid Gains at Midday The cattle complex is trading significantly higher in late-morning business with live contracts gaining on feeder counterparts. Lean hog issues are moderately higher with the help of bull-spreading and improving fundamentals. By John Harrington DTN Livestock Analyst GENERAL COMMENTS: The feedlot trade is very quiet near midday with a few starter bids noted in the South. Some buyers in Texas are bidding around $130, considerably below last week and substantially below asking prices of $137-plus. According to the midday report, the national hog base is $0.41 higher compared with the Prior Day settlement ($51.00-60.00, weighted average $57.86). Corn futures are modestly lower. LIVE CATTLE: Live cattle futures are well supported as the trade moves toward the noon hour. Spot February is leading the bullish charge, supported by aggressive short-covering, bull spreading interest and expectations of cash stability. Outside markets are generally higher at this time, but don't appear to be a particular factor in the live trade this morning. Beef cut-outs are lower at midday, down $1.43 (choice, $221.58) to off $1.30 (select, $215.12) with light to moderate box movement (47 loads of choice cuts, 23 loads of select cuts, 10 loads of trimmings, 34 loads of coarse grinds). FEEDER CATTLE: For the most part, feeder cattle issues are moderately higher, supported by spillover buying from the live market. Spot January is the only exception in that regard, trading a bit lower thanks to the discount of the cash index. Note that January is scheduled to expire on Thursday. LEAN HOGS: Lean hog futures continue to climb higher, supported by further evidence of tighter country supplies and greater packer spending. Bull spreading continues to be a popular strategy here as well, causing February and April to gain ground on most deferred issues. Carcass value is lower at midday with all primals trending lower except ribs and bellies. Pork cut-out: $75.78, down $0.79. CME cash lean 01/25: $58.77, up $0.40 (DTN Projected lean index for 01/27: $59.45, up $0.68). John A. Harrington can be reached at john.harrington@dtn.com (ES) Copyright 2016 DTN/The Progressive Farmer. All rights reserved.