DTN Midday Livestock Comments 08/03 12:08

DTN Midday Livestock Comments 08/03 12:08 Cattle Futures Extend Early-Month Rally Live and feeder contracts are significantly higher at midday with the latter boosted triple-digit gains. On the other hand, lean hog futures are no better than mixed in lackluster trade volume. By John Harrington DTN Livestock Analyst GENERAL COMMENTS: Cash cattle activity is limited at midday to just a few scattered bids (i.e., $114 in the South, $188 in part of the North). Asking prices seem to be firming around $120-122 and $190-192 in the North). There's little to suggest that significant business will surface before Thursday or Friday. According to the midday report, the national hog base is $1.06 lower compared with the Prior Day settlement ($60.00-65.50, weighted average $63.98). Corn futures are roughly 3 cents higher near the top of the noon hour, supported by higher action in the wheat trade and light short covering. U.S. stocks traded slightly higher at midday despite a surprise build in oil inventories. Currently, the Dow is positive by 32 points with the Nasdaq good by 9. LIVE CATTLE: Live contracts are solidly higher moving toward the final hour of business, supported by short covering, technical buying, and ideas of feedlot cash strength later this week. Contracts now range from 52 to 100 higher with October and December nosing above 100-day moving averages for the first time since mid March. Beef cut-outs are significantly higher at midday, up 0.96 (select, $192.42) to $1.41 (choice, $199.81) with moderate box movement (41 loads of choice cuts, 17 loads of select cuts, 15 loads of trimmings, 33 loads of coarse grinds). FEEDER CATTLE: Feeder issues are on fire at midday with most contracts currently in the green by 102 to 222 points. If we can hold these levels through the close, bulls will complain some impressive technical prizes. Like some of their live counterparts, 2016 feeder contracts are moving above 100-day moving average for the first time since late in the Jan-Mar quarter. LEAN HOGS: Ignoring the bullish vibes in the cattle complex, lean hog futures aren't going anywhere fast. Prices are mixed in a narrow range at midday, up 25 to off 47. At midday, carcass value is quoted nearly a buck higher with all primals lending support except the loin. Pork cut-out: $79.14, up 0.99. CME cash lean index for 08/01: 72.21, off 0.548 (DTN Projected lean index for 08/02: 71.61, off 0.60). John A. Harrington can be reached at john.harrington@dtn.com (CZ) Copyright 2016 DTN/The Progressive Farmer. All rights reserved.