DTN Midday Livestock Comments 08/01 12:15

DTN Midday Livestock Comments 08/01 12:15 Cattle Futures Blast Sharply Higher at Midday Triple-digit gains dominate the cattle complex at midday, supported by aggressive short-covering and higher feedlot sales reported late Friday. Lean hog issues are also well supported with only spot August lagging around unchanged. By John Harrington DTN Livestock Analyst GENERAL COMMENTS: Cattle buyers have been running the regular traps this morning as they evaluate the early month fed offering. New showlists appear to be mixed, larger in Colorado, smaller in Kansas and Texas, and generally unchanged in Nebraska. Asking prices are not well defined in the early going. Significant trade volume is not likely to surface until the second half of the week. According to the midday report, the national hog base is $1.74 lower compared with the Prior Day settlement ($62.00-$66.50, weighted average $64.33). Corn futures are 6-7 cents lower in late-morning biz, pressured by spillover selling from the bean pit and helpful growing conditions. U.S. equities are mixed at midday, checked by falling oil prices. The Dow is currently off 52 points with the Nasdaq positive by 14. LIVE CATTLE: Live futures have opened August with a bullish bang, holding impressive gains of 205 to 300 points at midday. August and October have spent much of the session locked up the 300-point limit. The premium status of feedlot cash established on Friday largely seems to be spurring the early week bullishness. Beef cut-outs are mixed at midday, up $0.78 (select, $190.38) to off $0.53 (choice, $197.04) with light box movement (27 loads of choice cuts, 13 loads of select cuts, zero loads of trimmings, 23 loads of coarse grinds). FEEDER CATTLE: Feeders are following the bullish lead of the live trade. Issues are mostly 390 to 450 points higher with nearbys August and September locked up the limit. Sharply lower corn futures are also adding wood to the fire. On an estimated run of 5,700 head (near even with last week and somewhat larger than 4,679 counted last year), Oklahoma City is selling feeder cattle and calves on a firm basis with demand described as "good" for all classes. LEAN HOGS: Generally speaking, lean contracts are 112 to 200 points higher near midday, supported by profit-taking and the adjustment of oversold charts. Spot August is holding close to unchanged, no doubt sobered by the way the cash index continues to struggle in the face of ample live supplies and pressured wholesale prices. The carcass value is more than a buck higher at midday, supported by recovering belly prices and higher loin sales. Pork cut-out: $88.57, up $1.18. CME cash lean index for 07/28: $73.73, off $0.74 (DTN Projected lean index for 07/29: $72.75, off $0.98). John A. Harrington can be reached at john.harrington@dtn.com (CZ) Copyright 2016 DTN/The Progressive Farmer. All rights reserved.