DTN Midday Livestock Comments 12/06 11:57

DTN Midday Livestock Comments 12/06 11:57 Red Hot Hog Futures Lean Meat Complex Higher at Midday Hog futures are blasting to new highs at midday, powered by technical buying and ideas that the country is turning the corner toward more manageable fundamentals. The cattle complex is also sharply higher in late-morning business with aggressive short covering triggered by spillover bullish from the lean hog market and the tall premium status of late week's feedlot trade. By Rick Kment DTN Livestock Analyst GENERAL COMMENTS: Feedlot country is generally quiet as we move toward the top of the noon hour. Some bids of $112 have been identified in the South. Asking prices are now well defined, but we know of some ready steers and heifers in Kansas and Texas priced around $115. According to the midday report, the national hog base is 0.83 higher compared with the Prior Day settlement ($43.50-50.50, weighted average $48.36). Corn futures are several cents higher right before midday, supported by follow-through buying and confirmation of extremely strong ethanol sales in October. The stock market is mostly flat at this time as investor fret over the Fed's next move. The Dow is 13 points higher near midday with the Nasdaq positive by 5. LIVE CATTLE: Through midmorning, live contracts seemed to be stuck in the same old gear of indecision. But buying energy suddenly took hold around midsession, no doubt boosted to some extent by the surging bullishness in the lean hog trade. Prices are 95 to 150 higher with spot Dec now almost 200 points above its early session low. If the basis can continue to weaken like this, feedlot managers will find it easier to dig in their boots in terms of higher asking prices. Beef cut-outs some higher at midday, up 0.24 (choice, $191.63) to 0.25 (select, $173.48) with light box movement (30 loads of choice cuts, 14 loads of select cuts, a half load of trimmings, 11 loads of coarse grinds). FEEDER CATTLE: Like their live counterparts, feeder issues got off to a sluggish start. Yet bulls have really picked up steady near midday, responding both to outside markets and the substantial premium of the cash index. Triple-digit gains dominate the market with prices currently 165 to 207 higher. LEAN HOGS: Hog bulls are clearly through the party at the CME with contracts now willing to race again of spot cash news, confidently anticipating tighter supplies and decent demand over the next several quarters. Currently 67 to 247 points higher, most contracts are scoring multi-months higher, generating more attractive technical signs in the process. The carcass value at midday is solidly higher, supported by better demand for fresh cuts and well as rib and belly items. Pork cut-out: $74.03, off .29. CME cash lean index for 12/02: 50.56, up 1.04 (DTN Projected lean index for 12/05: 51.03, up 0.47). John A. Harrington can be reached at john.harrington@dtn.com (ES) Copyright 2016 DTN/The Progressive Farmer. All rights reserved.