DTN Midday Livestock Comments 08/05 12:13

DTN Midday Livestock Comments 08/05 12:13 Cattle Paper Responds Positively at Midday to Stronger Cash News Live and feeder futures are solidly higher near the top of the noon hour, supported by technical buying and cash premiums. On the other hand, lean hog contracts are trading on a mixed basis with the fourth quarter on both spot August and the far deferreds. By John Harrington DTN Livestock Analyst GENERAL COMMENTS: Feedlot country is generally quiet at midday with just a few scattered sales report in parts of the North. The limited business looks about steady with Thrusday (i.e., $187 paid by majors). Thursday's trade volume turned out to be larger than first thought (e.g., 17,096 in Kansas; 31,374 in Nebraska). We could see more action this afternoon, but most business could be done for the week. The balance of showlists are priced around $120 in the South and $190-plus in the North. According to the midday report, the national hog base is $1.62 lower compared with the Prior Day settlement ($58.00-64.00, weighted average $62.26). Corn futures are fractionally higher at midday, modestly supported by short-covering and spillover buying from the bean market. Wall Street cheered the latest jobs report, sending stocks sharply higher on Friday with the S&P 500 hitting new all-time highs. The Dow is currently 159 points higher with the Nasdaq positive by 59. LIVE CATTLE: Live issues are generally 42 to 122 higher near midday with spot August leading the charge into the weekend. Traders are reversing Thursday's reversal thanks to higher feedlot sales reported late Thursday. Positive features today include short-covering, technical-buying, and light bull-spreading. Beef cut-outs are lower at midday, off $0.31 (choice, $198.95) to $0.40 (select, $190.45) with light box movement (43 loads of choice cuts, 9 loads of select cuts, zero loads of trimmings, 15 loads of coarse grinds). FEEDER CATTLE: Mirroring the bullish adjustment in the live market, feeder contracts are moving impressively higher. Prices are 42 to 160 points higher as traders move into the trading week's final hour. If the board can hold the high ground, most feeder issues stand to close the week well above 100-day moving averages. LEAN HOGS: Lean hog futures are mixed near midday with prices ranging from 37 higher to 42 lower. Late-week volume is quite lackluster mostly comprised of late-week profit-taking and position-evening by spreaders. Carcass value at midday is under pressured checked by lower sales of loins, picnics, ribs and bellies. Pork cut-out: $77.29, up $0.80. CME cash lean index for 08/03: $71.01, off $0.60 (DTN Projected lean index for 08/04: $70.48, off $0.53). John A. Harrington can be reached at john.harrington@dtn.com (CZ) Copyright 2016 DTN/The Progressive Farmer. All rights reserved.