DTN Midday Livestock Comments 08/04 12:11

DTN Midday Livestock Comments 08/04 12:11 Lean Hogs Struggle Further at Midday Lean hog futures remain under pressure at midday with triple-digit losses dominating the market. On the other hand, the cattle complex is mostly higher with feeders especially well supported. By John Harrington DTN Livestock Analyst GENERAL COMMENTS: Though generally quiet at midday, the cash cattle trade has recorded a few dressed deals to regional buyer in Nebraska/Iowa at $188. Last week's weighted average for was $186.29 basis Nebraska. Asking prices are generally around $190-192 in the North and $120-122 in the South. Significant trade volume could be postponed until Friday. According to the midday report, the national hog base is $1.15 lower compared with the Prior Day settlement ($59.00-64.50, weighted average $63.60). Corn futures are fractionally lower as the market moves toward the noon hour in lackluster trade volume. Stocks are little changed in late-morning biz as investors looked ahead for Friday's jobs report. The Dow is 4 points higher near the top of the noon hour with the Nasdaq better by 10. LIVE CATTLE: With the exception of some weakness in the summer of 2017, most live contracts are moderately higher at this time. Nearbys seem to be supported by ideas that packers will once again be forced this week to spend more for live inventory. Yet we may not known until tomorrow whether or not such expectations are justified. Beef cut-outs are mixed at midday, up 0.42 (choice, $199.62) to off 0.24 (select, $191.42) with very light box movement (28 loads of choice cuts, 14 loads of select cuts, zero loads of trimmings, 4 loads of coarse grinds). FEEDER CATTLE: For the most part, feeder issues are sharply higher at midday. Short covering technical and buying appear to be the major features at work. LEAN HOGS: The bearish script in this market never seems to change. Traders remain very fearful of mounting commercial pork production over the next several quarters. Prices now range from 37 to 145 lower with Oct through April attracting the most selling energy. Carcass value has rocketed higher at midday, surging under the power of a $16.57 hike in the belly primal. Pork cut-out: $80.90, up $3.69. CME cash lean index for 08/02: 71.61, off .60 (DTN projected lean index for 08/03: 71.01, off 0.60). John A. Harrington can be reached at john.harrington@dtn.com (CZ) Copyright 2016 DTN/The Progressive Farmer. All rights reserved.