DTN Midday Livestock Comments 06/02 11:58

DTN Midday Livestock Comments 06/02 11:58 Summer Hog Futures Carve New Contract Highs at Midday Lean hog futures are significantly higher near the noon hour with July and August sporting triple-digit gains. The cattle complex is moderate higher supported by short covering and cash premiums. By John Harrington DTN Analyst GENERAL COMMENTS: Cattle buying interest at midday is light with starter bids reported at $123 in the South and $200-203 in the North. Some asking prices are evident around $130-132 in the South and $210-plus in the North. Significant cash business will probably be delayed until sometime Friday. According to the midday report, the national hog base is 0.79 lower compared with the Prior Day settlement ($67.00-75.50, weighted average $72.50). Corn futures are 3-4 cents higher near the top of the noon hour, supported by spillover bullishness from the bean market. Equities are trading modestly lower at midday as traders await the employment report due Friday morning. The Dow is 24 points lower at this time with the Nasdaq off 10. LIVE CATTLE: While live issues put in a choppy performance through midsession, consistent and significant buying interest has surfaced near midday. Most contracts are 50 to 100 points higher. Spot June has nosed over 122 for the first time since May 23. Short covering and cautious cash optimism seem to be the main drivers. Beef cut-outs are higher at midday, up 0.09 (choice, $222.44) to 0.39 (select, $201.56) with moderate movement (61 loads of choice cuts, 43 loads of select cuts, zero loads of trimmings, 10 loads of coarse grinds). FEEDER CATTLE: Feeders have also improved from their early mixed performance. Contracts are generally 67 to 105 at midday. Spillover support from the live market is helping this market ignoring the stubbornly firm corn trend. LEAN HOGS: Lean hog futures are scoring impressive technical gains as we move toward the noon hour. New contact highs have been scored in both July and August as bulls finally show more enthusiasm in anticipating better fundamentals over the next 30-60 days. The carcass value is quoted moderately higher at midday, supported by a big jump in the belly primals (i.e., up $4.59). Pork cut-out: $85.36, up $1.01. CME cash lean for 05/31: 77.13, off 0.63 (DTN Projected lean index for 06/01: 76.68, off 0.45). John A. Harrington can be reached at john.harrington@dtn.com (ES) Copyright 2016 DTN/The Progressive Farmer. All rights reserved.