DTN Midday Livestock Comments 02/01 12:11

DTN Midday Livestock Comments 02/01 12:11 Feeder Cattle Futures Slump Lower Near Noon Hour Cattle futures are mostly lower at midday with particular selling pressure evident in the feeder market. On the other hand, lean hog contracts look narrowly mixed thanks in part to profit taking by bull spreaders, By John Harrington DTN Livestock Analyst GENERAL COMMENTS: \Activity in the cash cattle arena at midday is limited to the distribution of new showlists. The new offering appears to be mixed, larger in Texas and Colorado but smaller in Kansas and Nebraska. The severity of the pending winter storm could work to change the practical offering over the next several days. A few showlists in the South have been priced around $140-142. According to the midday report, the national hog base is $1.35 lower compared with the Prior Day settlement ($50.52-60.00, weighted average $58.57). The corm market is 2-3 cents lower in late-morning business, reined-in by wetter conditions in South America and slower manufacturing in China. Equities are trading lower, cautioned by declines in oil prices and continued softness in manufacturing data. The Dow is currently 111 points lower with the Nasdaq off 25. LIVE CATTLE: Despite higher feedlot sales late Friday (i.e., up to $138 in Kansas, Texas, and Western Nebraska), live contracts are moderately lower, checked by early-week profit taking and demand nervousness. The cattle inventory was seen a bit negative to some with the 2015 expansion somewhat greater than expected. Yet any fallout in this regard seems more pronounced in the feeder trade. Beef cut-outs are mixed at midday, up $1.03 (choice, $219.79) to off $1.94 (select, $215.94) with light box movement (24 loads of choice cuts, 10 loads of select cuts, 11 loads of trimmings, 7 loads of coarse grinds). FEEDER CATTLE: Triple-digit losses dominate the feeder market at midday. The annual inventory implied a somewhat larger feeder pool than generally anticipated, probably stoking selling interest early this week. On estimated receipts of 9,500 head (i.e., near even with last week but up from 4,300 in 2015), Oklahoma City has sold steers and heifers generally steady at midday with demand described as moderate. LEAN HOGS: For the most part, lean hog issues are moderately lower at this time. Light selling appears to be tied to profit taking and pre-storm caution. Carcass value is moderately higher at midday as strong demand for bellies and loins overshadowed rib weakness. Pork cut-out: $77.35, up 0.34. CME cash lean 01/28: 61.07, up 0.84 (DTN Projected lean index for 01/29: 61.87, up 0.80). 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.