DTN Midday Livestock Comments 06/15 11:31

DTN Midday Livestock Comments 06/15 11:31 Cattle Futures Struggle With Triple-Digit Losses at Midday Live and feeder cattle futures are sharply lower near the noon hour pressured by long liquidation and technical selling. On the other hand, lean hog contracts are mixed in late-morning business with summer issues gaining on deferreds. By John Harrington DTN Livestock Analyst GENERAL COMMENTS: The cash cattle trade remains very quiet today with just a few starter bids evident in parts of the South (i.e. $122 basis Kansas). Asking prices are not well defined. We've heard a few feedlot managers in the South pricing steers and heifers around $128 to $130. Significant trade volume probably will be delayed until Thursday or Friday. According to the midday report, the national hog base is 0.22 higher compared with the Prior Day settlement ($72.00-80.25, weighted average $78.58). Corn futures are lower at this time, down 2 1/2 in the July and December. LIVE CATTLE: Despite Tuesday's late bounce, live cattle futures are back on the defensive near midday. Most contracts are 105 to 152 lower. The market appears to be pressured by long liquidation and a general shorage of buying interest. Spot June has fallen below the trendline drawn from the lows of early and late May. Beef cut-outs are mixed at midday, down $2.42 (choice, $225.92) to up 0.57 (select, $204.64) with light box movement (43 loads of choice cuts, 17 loads of select cuts, 17 loads of trimmings, 22 loads of coarse grinds). FEEDER CATTLE: Feeder cattle also are sharply lower. Most contracts are in the red by 110 to 150 points. Despite the premium status of the cash index, feeder bears are locked on the deteriorating state of deferred live contracts. LEAN HOGS: Lean hog futures are mixed with summer issues significantly higher and far deferreds somewhat lower. This is a trading pattern that has become rather common over the last week or so thanks to bull-spreading and bullish notions of midsummer market strength. Once again August and October have set new contract highs. New spot July is now trading 35 points lower, pressured by the discount of the cash lean index. Carcass value is modestly higher at midday with all primals higher except hams. Pork cut-out: $88.12, up 0.29. CME cash lean index for 06/13: 81.10, up 0.33 (DTN Projected lean index for 06/14: 81.62, up 0.52). John A. Harrington can be reached at john.harrington@dtn.com (CZ) Copyright 2016 DTN/The Progressive Farmer. All rights reserved.