DTN Midday Livestock Comments 04/08 12:04

DTN Midday Livestock Comments 04/08 12:04 Cattle paper hold triple-digit gains at midday Live and feeder futures continue to hold significant advances at midday, fueled by late-week short covering and ideas that seasonal cash strength has found new life. At the same time, lean hog contracts are mixed with summer months firmer than either spot April or the far deferreds. By John Harrington DTN Analyst GENERAL COMMENTS: Feedlot country is generally quiet at midday with activity limited to scattered sales in parts of Nebraska and Iowa. Some dressed deals have been turned in at $216, $1 higher than yesterday and last week. Unsold cattle are priced around $136 in the South and $218 in the North. We suspect that country movement is about done for the week. According to the midday report, the national hog base is not tested due to rules of confidentiality. Corn futures are fractionally mixed in featureless action near the top of the noon hour as traders ignore strength in both beans and wheat. U.S. stocks are trading mixed amid a rally in oil prices and a softening U.S. dollar. The Dow is currently 48 points higher with the Nasdaq off by 3. LIVE CATTLE: Live issues are mostly 92 to 167 points higher near midday with spring and summer months attracting the most buying interest. This market gapped higher on the opening and really hasn't ever seriously looked back. Prices are supported by aggressive short covering, bull spreading, and rejuvenated cash market optimism. Beef cut-outs are mixed at midday, up 0.56 (choice, $215.18) to off 0.17 (select, $205.62) with light box movement (32 loads of choice cuts, 11 loads of select cuts, zero loads of trimmings, 13 loads of coarse grinds). FEEDER CATTLE: Feeder contracts are outperforming their live counterparts. From spot April to October, prices are currently 120 to 272 higher. Even given current high watermarks, April and May remain $2-6 below the cash index. LEAN HOGS: Lean futures traded moderately lower through midsession, but have now turn mixed (i.e., up 32 to off 22). With expiration scheduled for next Thursday, the 14th, spot April is largely held in check by the small discount of the cash index. More generally, rather flat fundamentals in the late winter/early spring period have simply not inspired the board to swing one way or the other. Carcass value is moderately lower at midday with lower loins, hams and bellies overshadowing higher sales of ribs and butts. Pork cut-out: $77.01, off 0.34. CME cash lean 04/06: 66.56, up .25 (DTN Projected lean index for 04/07: 66.57, up 0.01). John A. Harrington can be reached at john.harrington@dtn.com (ES) Copyright 2016 DTN/The Progressive Farmer. All rights reserved.