DTN Midday Livestock Comments 06/17 11:17

DTN Midday Livestock Comments 06/17 11:17 Meat Futures Choppy at Midday The cattle complex is putting in a choppy trade with traders cautious before the development of cash business. Lean hog contracts are mixed with August gaining on both spot July and deferreds. By John Harrington DTN Livestock Analyst GENERAL COMMENTS: The cash cattle trade is very slow in developing with just a few token bids noted here and there. Some bids have been reported in Kansas at $119 on a live basis. On the other hand, we've seen a few dressed bids in the North at $191 to $193. Asking prices are not well defined at this time with some cattle priced at $123 to $125 in the South and $195 to $200 in the North. According to the midday report, the Iowa/Southern Minnesota hog base is $0.26 lower compared with the Prior Day settlement ($74.00-$81.25, weighted average $81.05). Corn futures are about 10 cents higher at midday. LIVE CATTLE: Action in the live cattle market has been very choppy through the morning. Contracts opened significantly lower, pressured by follow-through selling and beef demand worries. Yet, short-covering soon developed, supporting higher prices through mid-session. Most contracts have now softened once again, reflecting nervousness tied to the lack of cattle buying interest in the country. Beef cut-outs are lower at midday, substantially so in select carcasses. Off $0.503 (choice, 222.98) to down $2.25 (select, $200.50) with light-to-moderate box movement (52 loads of choice cuts, 19 loads of select cuts, 5 loads of trimmings, 15 loads of coarse grinds). FEEDER CATTLE: Feeder futures have experienced a similar volatility as their live counterparts through midday. Prices are now mixed, ranging from 27 higher to 52 lower. We've seen a combination of short-covering and nervousness linked to sharply higher corn prices. LEAN HOGS: Although the August contract has consistently traded higher through the morning, most lean issues are now moderately lower. Generally speaking, few traders appear to be pressured by late-week profit-taking and worries that nearby premiums will prove excessive in predicting cash potential over the next 30-60 days. Additionally, traders are probably beginning to position ahead of next week's Hogs and Pigs Report scheduled for release on Friday, June 24. Carcass value rebounded substantially on the midday report, with strength in all cuts except hams. Pork cut-out: $88.63, off $1.55. CME cash lean index for 06/15: $82.19, up $0.57 (DTN Projected lean index for 06/17: $82.62, up $0.43). John A. Harrington can be reached at john.harrington@dtn.com (CZ) Copyright 2016 DTN/The Progressive Farmer. All rights reserved.