DTN Midday Livestock Comments 07/21 12:01

DTN Midday Livestock Comments 07/21 12:01 Meat Futures Melt at Midday in Face of Sweltering Summer Heat Triple-digit losses dominate meat futures at midday thanks to aggressive long liquidation, technical selling, and ongoing worries about midsummer demand. By John Harrington DTN Livestock Analyst GENERAL COMMENTS: Cattle buying interest is very cautious near the top of the noon hour, especially given the imploding behavior of futures. In the North, we've seen bids ranging from $181 to $184, but the top of that range was reported early and may not now be available. No bids have been noted in the South. Some asking prices are around $188 plus in the North and $117-118 in the South. According to the midday report, the national hog base is $1.48 lower compared with the Prior Day settlement ($69.64-71.00, weighted average $71.54). Corn futures are 1-2 cents lower in late morning business, checked somewhat by new ideas of yield friendly late summer weather. U.S. stocks are softer at midday as second quarter earning turn more mixed and traders take profits following a week of record highs for the Dow and S&P. Currently, the Dow is off 77 points with the Nasdaq off by 9. LIVE CATTLE: Live cattle futures are getting hit hard at midday, bashed by triple digit losses. Traders are clearly anxious to lead the cash feedlot trade lower. The dog days of summer are getting doggier, underscored by ugly heat indices forecasts over much of the Central Plains and Midwest. Beef cut-outs are moderately lower at midday, off .68 (choice, $200.63) to 87 (select, $190.14) with light box movement (42 loads of choice cuts, 16 loads of select cuts, 4 loads of trimmings, 10 loads of coarse grinds). FEEDER CATTLE: Feeders are plunging lower along with their market counterparts. Needless to say, the lower deferred live targets begin, the more defensive commercial buyers in this market become (especially given the return of feedlot red ink in the spot market). LEAN HOGS: Triple-digit losses are dominating the lean hog trade, setting another round of new contract lows all over the place. Widespread selling throughout the meat complex is clearly help to specifically stoke the bearish fire here. Carcass value is moderately lower at midday, trimmed by all major primals except the belly. Pork cut-out: $88.89, off 0.67. CME cash lean index for 07/19: 78.38, off 0.75 (DTN Projected lean index for 07/20: 77.87, off 0.51). John A. Harrington can be reached at john.harrington@dtn.com (CZ) Copyright 2016 DTN/The Progressive Farmer. All rights reserved.