DTN Midday Livestock Comments 04/06 11:46

DTN Midday Livestock Comments 04/06 11:46 Cattle Futures Attempt Significant Rally at Midday Live and feeder cattle futures are significantly higher at midday, boosted by short-covering and ideas of oversold charts. Lean hog contracts are moderately higher, supported by news of better pork demand and spillover buying from the cattle complex. By John Harrington DTN Analyst GENERAL COMMENTS: The cash cattle trade at midday is lightly tested with just a few live transactions in Kansas at $133, fully steady with last week. Packer inquiry in general seems to be decent, suggesting that several packers are quite short-bought and in need of slaughter steers and heifers over the next several days. Asking prices are around $135 to $136 in the South and $218-plus in the North. The Iowa/Minnesota Daily Direct Morning Hog report had no prices reported due to confidentiality. Corn futures are up slightly at midday, 1 3/4 higher in the May and 3/4 higher in the December. LIVE CATTLE: Live cattle contracts are trading 50 to 177 higher near midday, supported by short-covering, technical buying, and signs of better packer demand in the country. April through August are gaining on far deferreds thanks to bull-spreading interest. However, bulls do face tough overhead resistance near 134 basis April and 124 basis June. Beef cut-outs are mixed at midday, off 0.46 (choice, $218.16) to down $0.33 (select, $208.87) with light to moderate box movement (70 loads of choice cuts, 34 loads of select cuts, 5 loads of trimmings, 18 loads of coarse grinds). FEEDER CATTLE: Feeder futures are mostly 77 to 165 higher at this time as traders attempt to mirror recovery interest in the live market. The premium status of the cash index is also supportive of spot April. LEAN HOGS: Lean hog contracts are generally 15 to 60 higher. Note that summer contracts are gaining on both nearbys and the far deferreds. Besides spillover buying from the cattle complex, hog futures seem to be supported by signs of improving wholesale pork demand. The carcass value has opened with moderate strength as higher values for loins (+$0.76), loins (+$0.79), butts (+$1.65), picnics (+$2.12), and bellies (+$1.88) overtook weakness in hams (-$0.57) and ribs (-$2.10). Pork cut-out: $77.39, up 0.86. CME cash lean 04/04: 66.00, up 0.14 (DTN Projected lean index for 04/05: 66.31, up 0.31). For more from John, see http://www.feelofthemarket.com/ (ES) Copyright 2016 DTN/The Progressive Farmer. All rights reserved.