DTN Midday Livestock Comments 12/16 12:05

DTN Midday Livestock Comments 12/16 12:05 Triple-Digit Gains Dominate Cattle Futures at Midday The cattle complex is sharply higher near the top of the noon hour, supported by technical buying, pre cash short-covering and further signs of wholesale product strength. Lean hog contracts are less on fire, but still suggest decent buying interest, especially relative to spot Feb. By John Harrington DTN Livestock Analyst GENERAL COMMENTS: Feedlot country is generally quiet at midday. Some bids of $108 have been identified in the South and $170-$173 in the North. Asking prices are around $114 in Kansas and Texas, and $175-plus in the North. Significant trade volume could be delayed until late this afternoon. According to the midday report, the national hog base is $0.94 lower compared with the Prior Day settlement ($45.00-$53.00, weighted average $51.88). Corn futures are several cents lower at this time in a slow, featureless trade. The stock market is mixed with the Dow up 12 points and the Nasdaq off 7. LIVE CATTLE: Live issues are impressively higher near midday with Dec through April charging ahead of deferreds with triple-digit gains. Spot December is working hard to take out resistance just over 112, but so far hasn't quite got the job done. It would certainly help is some evidence of greater packer spending in the country would surface. But so far cattle buyers are fighting to hold the line on the cost of live inventory. The jury may remain out in that regard until late this afternoon. Beef cut-outs are sharply higher at midday, up $1.31 (choice, $194.77) to $2.16 (select, $118.70) with very light box movement (31 loads of choice cuts, 5 loads of select cuts, zero loads of trimmings, 9 loads of coarse grinds). FEEDER CATTLE: Feeders seems to be attracting decent late-week support with prices 70 to 125 higher at midday. Needless to say, bulls are carefully watching the live trade for inspiration. If spot January can close the week above 130, new technical buying interest would probably surface early next week. LEAN HOGS: Lean hog futures are well supported in late-morning business with prices mostly 15 to 142 higher. Spot Feb is attracting the most buying interest thanks to bull-spreading and ideas of tightening ready hog supplies as we move into the first quarter. The carcass value is modestly higher with weakness in processing primals offset by strength in fresh cuts. Pork cut-out: $78.18, up $0.21. CME cash lean index for 12/14: $57.56, up $0.59 (DTN Projected lean index for 12/15: $57.71, up $0.12). John A. Harrington can be reached at john.harrington@dtn.com (ES) Copyright 2016 DTN/The Progressive Farmer. All rights reserved.