DTN Midday Livestock Comments 06/13 12:16

DTN Midday Livestock Comments 06/13 12:16 Cattle Futures Slammed at Midday With Limit Losses The cattle complex has launched the new week with an ugly stumble. Most live and feeder contracts are locked limit down at midday, hammered by aggressive long liquidation and technical selling. By John Harrington DTN Livestock Analyst GENERAL COMMENTS: Feedlot country is typically quiet as packers focus exclusively on the collection of new showlists. The fed offering appears to be larger in all areas (though the increase in Kansas seems quite modest). Asking prices are not defined at this time with both sides scratching heads in the face of the imploding board. According to the midday report, the national hog base is .77 lower compared with the Prior Day settlement ($70.00-79.00, weighted average $76.61). Corn futures are 9-11 cents higher near the top of the noon hour, supported by forecasts of hot temps, disappointing rainfall over the weekend, and impressive weekly export inspections. Currently, the stock market is lower as investors looked ahead to the week's scheduled Fed meeting as well as the upcoming U.K. vote on whether to leave the European Union. The Dow is 43 points lower at this time with the Nasdaq off 24. LIVE CATTLE: Live contracts are sharply lower at midday with June through October locked down the 300-point limit. Aggressive selling is fueled by massive long liquidation and technical selling. This new wave of bearishness was sparked in part by Friday's disappointing cash trade. Many fear the season's best combination of tight fed supplies and strong beef demand has already come and gone. Beef cut-outs are mixed at midday, up .36 (choice, $228.03) to off .22 (select, $204.08) with light box movement (40 loads of choice cuts, 24 loads of select cuts, 3 loads of trimmings, 11 loads of coarse grinds). FEEDER CATTLE: Feeder issues are also struggling at this time with most prices off 430 to 450. Besides spillover bearishness from the live market, the intrinsic value of feeder cattle is being seriously taxed this morning by another round of significant gains in the corn trade. LEAN HOGS: Compared with the turmoil in the cattle complex, the lean hog trade at midday looks the Rock of Gibraltar. Lean prices are no worse than mixed as we move into the final hour of business, up 125 to of 47. Both July and August are gaining ground on soon-to-expire June and the far deferreds. The carcass value at midday reflects decent product demand, especially in terms of loins. Pork cut-out: $87.74, up $1.42. CME cash lean index for 06/09: 80.42, up .66 (DTN Projected lean index for 06/10: 80.77, up .35). For more from John see http://www.feelofthemarket.com/ (CZ) Copyright 2016 DTN/The Progressive Farmer. All rights reserved.