DTN Midday Livestock Comments 07/20 11:22

DTN Midday Livestock Comments 07/20 11:22 Livestock Futures Trade Mixed at Midday The cattle complex at midday is mixed in both live and feeder markets, scrambled by uncertain cash potential and pre-report positioning. Hog contracts are also mixed moving toward the noon hour with nearbys losing ground to deferreds. By John Harrington DTN Livestock Analyst GENERAL COMMENTS: Light cattle trade is evident in parts of the South at midday. Some live sales have been reported at $115, $2 lower than last week. Actual business in the North has not yet developed with packer inquiry light to moderate (some bids have been noted at $114 to $115 on a live basis, $184 dressed). According to the midday report, the national hog base is $1.32 lower compared with the Prior Day settlement ($65.00-71.35, weighted average $70.44). Corn futures are lower, down about 2 cents. LIVE CATTLE: Although live contracts opened moderately lower, renewed buying interest near midday has boosted most contracts into moderate black ink. Light bull spreading and short-covering are factors causing nearbys to gain on deferreds. Spot August is also being supported by cash premiums. Beef cut-outs are lower at midday, down .71 (choice, $201.57) to $0.83 (select, $191.53) with light to moderate box movement (52 loads of choice cuts, 31 loads of select cuts, 7 loads of trimmings, 18 loads of coarse grinds). FEEDER CATTLE: Feeder cattle futures are moderately higher. Gains range from 10 to 27 points. Generally speaking, the trade is very slow and featureless. On one hand, sellers are tired of beating a dead horse. On the other hand, buyers are not yet inspired to buy board discounts. LEAN HOGS: Lean hog contracts opened moderately higher, supported by short-covering and extremely oversold charts. However, action near midday has turned more mixed with nearby contracts once again attracting stubborn selling interest. Carcass value at midday is moderately lower, with weakness in loins (-$1.27) and hams $3.51) pulling the total down. Pork cut-out: $90.20, down 0.94. CME cash lean index for 07/15: 79.90, off .56 (DTN Projected lean index for 07/18: 79.13, off .77). John A. Harrington can be reached at john.harrington@dtn.com (CZ) Copyright 2016 DTN/The Progressive Farmer. All rights reserved.