DTN Midday Livestock Comments 06/16 11:59

DTN Midday Livestock Comments 06/16 11:59 Cattle Futures Remain Trapped in Bearish Vortex Live and feeder futures are once again struggling with triple-digit losses at midday, pressured by further long liquidation and technical selling. At the same time, lean hog contracts are mixed linked to profit-taking and the unwinding of bull spreads. By John Harrington DTN Livestock Analyst GENERAL COMMENTS: The cash cattle trade is lightly tested so far today with just a few dressed deals reported in the North at $195-$196. Live bids in the South range from $119-$121. Given the defensive tone of the board, asking prices are difficult to identify at this time. Our guess is that some steers and heifers are priced around $125 in the South and $205-plus in the North. According to the midday report, the national hog base is $0.42 lower compared with the Prior Day settlement ($70.00-$78.75, weighted average $77.88). Corn futures are nearly a nickel lower at midday, pressured by a stronger dollar and commercial selling in the bean trade. Equities are lower near the top of the noon hour (though off session lows), pressured by declines in oil prices and concerns about next week's Brexit vote. Currently, the Dow is off 21 points with the Nasdaq down by 23. LIVE CATTLE: Long liquidation, technical-selling and beef demand worries continue to chisel deeper and deeper board discounts at midday. Losses at this time range between 72 and 147 points. Spot June has dipped to its lowest point since May 4. Losses in beef cut-outs are significantly lower at midday, off $1.43 (choice, 224.99) to $1.47 (select, $202.79) with light-to-moderate box movement (47 loads of choice cuts, 25 loads of select cuts, zero loads of trimmings, 16 loads of coarse grinds). FEEDER CATTLE: Feeder futures are getting hammered along with their live counterparts as business moves toward its final hour. Prices are generally 152 to 225 points lower with spot August scratching a new contract low. Needless to say, the intrinsic value of feeders is faltering as deferred live targets sink lower and lower. LEAN HOGS: Lean futures are narrowly mixed at midday, up 25 to off 45. Summer contracts have faded from early session lows, no doubt checked in part by spillover selling from the cattle complex. Carcass value is some lower near midday with most of the wholesale pressure linked to fresh cuts. Pork cut-out: $87.10, off $0.30. CME cash lean index for 06/14: $81.62, up $0.52 (DTN Projected lean index for 06/15: $82.19, up $0.57). John A. Harrington can be reached at john.harrington@dtn.com (CZ) Copyright 2016 DTN/The Progressive Farmer. All rights reserved.