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DTN Midday Livestock Comments 06/01 12:03

1 Jun 2016
DTN Midday Livestock Comments 06/01 12:03 Lean Hog Futures Jump Higher at Midday Triple-digit gains dominate the lean hog trade as it moves toward the noon hour. Cattle futures are moderately lower near midday, pressured by long liquidation and uncertain cash prospects. By John Harrington DTN Analyst GENERAL COMMENTS: The cash feedlot market remains untested with sellers still waiting to reject the first bid. Some Southern showlists have been priced around 130-plus in the South. Significant trade volume could easily be delayed until sometime Friday. According to the midday report, the national hog base is $1.11 higher compared with the Prior Day settlement ($70.34-75.00, weighted average $72.87). Corn futures are 7-8 cents higher in late-morning action, supported by commercial buying. The Dow is currently off 26 points with the Nasdaq unchanged. LIVE CATTLE: Live contracts are generally 12 to 82 points lower at midday, checked by profit taking in the wake of the recent rally. Yet the trade seems rather choppy with nearbys now well above session lows. The trade wants to get a better handle of weekend meat clearance and early-month cash prospects. Beef cut-outs are substantially higher at midday, up 0.54 (select, $201.91) to $1.40 (choice, $222.74) with light to moderate movement (38 loads of choice cuts, 27 loads of select cuts, 10 loads of trimmings, 13 loads of coarse grinds). FEEDER CATTLE: Feeder issues also on the defensive at this time with most issues off by as much as 57 to 117. The feeder index as of May 30 calculated at 143.75, so the discount is probably weighing on the board to some extent. Further strength in the corn market could be another negative. LEAN HOGS: Despite yesterday's lackluster action here, buyers appear to be reconsidering summer potential at midday. Contracts are sharply higher at this time, generally positive by 47 to 150 points. Yet 83-84 represents tough overhead resistance for June through August. Carcass value is quoted a buck higher at midday, supported by better demand for all primals except the belly. Pork cut-out: $85.36, up $1.01. CME cash lean for 05/27: 77.76, off 0.47 (DTN Projected lean index for 05/31: 77.13, off 0.63). John A. Harrington can be reached at john.harrington@dtn.com (ES) Copyright 2016 DTN/The Progressive Farmer. All rights reserved.