DTN Midday Livestock Comments 01/29 12:16

DTN Midday Livestock Comments 01/29 12:16 Cattle Futures Anticipate Herd Inventory with Mixed Feelings The cattle complex is widely mixed at midday with live futures solidly higher but feeder issues sharply lower. On the other hand, lean hog futures are most higher with nearby contracts especially benefiting from bull spreading interest. By John Harrington DTN Livestock Analyst GENERAL COMMENTS: The cash cattle trading is still waiting to be born with packers bids somewhat more evident by still lacking in general fervor. We have see a few deals in the North marked as high as $212, $4-5 higher than last week. For the most part, Southern bids are around $132, $6 or more below asking prices. Many Northern showlists are priced around $215. According to the midday report, the Iowa hog base is 0.03 lower compared with the Prior Day settlement ($52.00-61.00, weighted average $60.44). Corn futures are a nickel or so higher at midday, supported by a strong rally in beans tied to dry South American weather. U.S. stocks are more than 1.5 percent higher at midday, boosted after the Bank of Japan unexpectedly adopted a negative interest rate policy for the first time. The Dow is 276 points higher at the time with the Nasdaq up 71. LIVE CATTLE: While live contracts are still mostly higher at this writing, prices have faded significantly from early session progress (e.g., nearby contracts have faltered by 100-150 points). The late sell-off is tied to collapsing sentiments in the feeder market. That said, nearby live issue still seem to be supported by feedlot cash expectations. Beef cut-outs are mixed at midday, up $1.90 (select, $217.33) to off $1.27 (choice, $218.85) with light to moderate box movement (50 loads of choice cuts, 44 loads of select cuts, 9 loads of trimmings, 3 loads of coarse grinds). FEEDER CATTLE: Feeder futures followed live contracts higher in the early going, but contracts have dropped sharply lower near midday with prices off as much as 245 to 290 points. Apparently, long liquidation and commercial selling has been sparked by fears that the January 1 inventory will confirm a substantial increase in unplaced feeder cattle supplies. LEAN HOGS: Lean futures are mostly higher moving toward the noon hour with prices ranging positive by 25 to 112 points. Bull spreading continues to be a popular trading strategy here, effectively boosting Feb and April at the expense of deferreds. Needless to say, this week's impressive flow of positive cash and product news has worked to really feed bullish ambition on the board. Carcass value is moderately higher at midday, supported by firming action in all primals except the butt. Pork cut-out: $77.39, up 0.46. CME cash lean 01/27: 60.23, up 0.78 (DTN Projected lean index for 01/28: 61.07, up 0.84). John Harrington can be reached at feelofthemarket@yahoo.com Follow John Harrington on Twitter @feelofthemarket John Harrington can be reached at feelofthemarket@yahoo.com Follow John Harrington on Twitter @feelofthemarket (ES) Copyright 2016 DTN/The Progressive Farmer. All rights reserved.