DTN Midday Livestock Comments 06/03 11:00

DTN Midday Livestock Comments 06/03 11:00 Nearby Hog Futures Keep Surging Higher Nearby Hog Futures Keep Surging Higher By John Harrington DTN Analyst GENERAL COMMENTS: Nearby Hog Futures Keep Surging Higher July and August lean hog contracts are once again notching new highs at midday, supported by technical buying and seasonal optimism. Generally speaking, the cattle complex is moderately higher in late morning action as traders cover shorts prior to the development of late week cash business. Although the week's hourglass is quickly draining of sand, cattle buyers remain in slow gear at midday with just a few bids noted at $200-202 in the North and $123-124 in the South. Asking prices seem firm at $130 plus in the South and $210 plus in the North. Perhaps compromise in the country won't surface until late this afternoon. 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). The corn trade is fractionally mixed near the top of the noon hour in slow and lackluster volume. U.S. stocks are trading some lower as sharp miss on the May jobs report renews some concerns about economic growth. The Dow is currently off 43 points with the Nasdaq down by 34. LIVE CATTLE: Live contracts are mostly 17 to 50 points higher near midday, supported by short covering and a degree of cash optimism. Although packers are taking their own sweet time in securing near-term slaughter numbers, the board seems willing to wait for better news. Needless to day, the exiting discount of the board relative to feedlot cash helps nurture such patience. Beef cut-outs are moderately lower at midday, off 0.55 (choice, $222.73) to 0.64 (select, $200.77s) with light movement (24 loads of choice cuts, 22 loads of select cuts, zero loads of trimmings, 9 loads of coarse grinds). FEEDER CATTLE: The feeder trade continues to mirror the moderate strength of live contracts. Prices are roughly 15 to 52 points higher at this point. Trade volume seems to be very slow. LEAN HOGS: Lean futures continue to build on bullish chart formations. While most contracts are in the black, virtually all of the bullish focus is concentrated on July and August. Both of these summer issues command triple-digit gains and new contracts highs for the second session in a row. The pork carcass value is quoted moderately lower at midday, pressured by softer sales of bellies, ribs, and picnics. Pork cut-out: $85.36, up $1.01. CME cash lean for 06/01: 76.68, off .45 (DTN Projected lean index for 06/02: 76.79, up 0.11). John A. Harrington can be reached at john.harrington@dtn.com (ES) Copyright 2016 DTN/The Progressive Farmer. All rights reserved.