DTN Midday Livestock Comments 04/07 11:59

DTN Midday Livestock Comments 04/07 11:59 Meat Futures Struggle in Red Ink near Midday The cattle complex is under general pressure at midday, checked by long liquidation and further signs of eroding carcass value. Lean hog contracts are moderately lower at midday as prices drift in the absence of inspiring fundamentals. By John Harrington DTN Analyst GENERAL COMMENTS: Cattle buying interest is improving at midday with bids and light sales generally stronger than yesterday. Morning business in the South has ranged from $133-134, steady to $1 higher than last week. Scattered dressed sales in Nebraska and Iowa have been marked as high as $214, $1 lower than last week but $2 higher than Wednesday. Asking prices on unsold cattle are around $135 plus in the South and $216 plus in the North. According to the midday report, the national hog base is $1.56 lower compared with the Prior Day settlement ($55.80-62.00, weighted average $60.85). Corn futures are close to 3 cents higher near the top of the noon hour, supported in part by decent weekly export sales. U.S. stocks are pressed at midday as continued strength in the yen against the dollar stokes concern about global growth and the effectiveness of central bank policy. The Dow is 160 points lower and the Nasdaq is down by 58. LIVE CATTLE: Although live futures have been pressured through most of the morning (at times, pressured by triple digits), losses seem to be easing as the market moves toward midday. Clearly, reports of some strength in packers are causing bears to at least momentary rethink their pessimism. At this time, contracts are off only 5 to 50 points. Beef cut-outs are significantly lower at midday, off 0.21 (select, $207.22) to $1.37 (choice, $215.04) with moderate box movement (81 loads of choice cuts, 21 loads of select cuts, 7 loads of trimmings, 17 loads of coarse grinds). FEEDER CATTLE: Spot April is 15 points higher near midday, supported by the premium of the cash index. Yet all other contracts are mired in red ink, pressured by poor feedlot equity and general commercial caution. LEAN HOGS: Lean contracts are moderately lower moving toward the noon hour, limited by a general lack of buying interest. While conventional knowledge still bets on tighter numbers by late spring and early summer, few can see that scenario blooming anytime soon. Carcass value is modestly lower at midday with sharply higher loin sales offset by weakness in all other primals. Pork cut-out: $77.77, off 0.11. CME cash lean 04/05: 66.31, up 0.31 (DTN Projected lean index for 04/06: 66.56, up .25). John A. Harrington can be reached at john.harrington@dtn.com (ES) Copyright 2016 DTN/The Progressive Farmer. All rights reserved.