DTN Midday Livestock Comments 04/28 12:04

DTN Midday Livestock Comments 04/28 12:04 Cattle Futures Collapse At Midday on Renewed Long Liquidation Live and feeder cattle contracts are getting slammed at midday, pressured by long liquidation, technical selling, and softening beef demand. Lean hog futures are higher, supported by improving fundamentals and ideas of a seasonal rally at hand. By Rick Kment DTN Analyst GENERAL COMMENTS: The cash cattle trade remains unestablished with just a few bids noted in the North at $196 (there may be a few spot sales at that price). Some showlists have been priced around $128-130 in the South and $200-205 in the North. Packers are thought to be relatively short bought, but defensive futures and eroding carcass may be taking a toll on feedlot psychology. According to the midday report, the national hog base is 0.30 lower compared with the Prior Day settlement ($63.50-70.50, weighted average $67.93). The stock market is mixed at midday with the Dow off 46 and the Nasdaq better by 11. LIVE CATTLE: Live futures are eroding big time at midday with most contracts reflecting losses off 122 to 210. Aggressive long liquidation is back in play after several rounds of profit taking seen earlier in the week. As the board sputters lower, the strong basis implications will make it tough for feedlot managers to dig in their heels in terms of higher asking prices. Beef cut-outs are sharply lower at midday, off $1.29 (select, $204.30) to $1.68 (choice, $213.21) with light to moderate box movement (43 loads of choice cuts, 15 loads of select cuts, 10 loads of trimmings, 26 loads of coarse grinds). FEEDER CATTLE: With the exception of spot April, all feeder futures ae suffering major losses at midday (i.e., over 300 points), clobbered by faltering live targets, stronger action in the corn trade, and commercial selling. Of course, spot April is partially supported by premium status of the cash index. LEAN HOGS: Lean contracts are mostly 22 to 87 points higher near the top of the noon hour, supported by signs of greater packer spending in the country of outstanding weekly export sales. Yet summer issues have pulled back some from early session highs, enough to remain many that 80 has represented tough overhead resistance for weeks and weeks. Carcass value at midday is moderately lower, pressured by softer demand for ribs, hams, and bellies. Pork cut-out: $81.61, off 0.41. CME cash lean 04/26: 69.06, up 0.58 (DTN Projected lean index for 04/27: 69.81, up 0.75). John A. Harrington can be reached at john.harrington@dtn.com (ES) Copyright 2016 DTN/The Progressive Farmer. All rights reserved.