DTN Midday Livestock Comments

GENERAL COMMENTS:

Light packer inquiry is evident is part of the North in the late morning period (i.e., $195 bids in Nebraska and Iowa), but buying interest in Kansas and Texas remains dead as a doornail. Asking prices are around $131 plus in the South and $200 plus in the North. We still expect light to moderate business to surface sometime over the next several hours. According to the midday report, the national hog base is 0.73 lower compared with the Prior Day settlement ($49.43-$52.25, weighted average $50.17). Corn futures are generally 5-6 cents lower moving toward midday, pressured long liquidation and a stronger dollar. The stock market is struggled to hold higher during the shortened Friday trading session, weighed by a decline in shares of Disney and lower oil prices. The Dow is 4 points lower in late morning business with the Nasdaq up 11.

LIVE CATTLE:

Live prices are mixed at this time, up 55 to off 42. Although live contracts have spent more of the morning in the black, buying interest has clearly waxed and waned. Front issues seem to be betting on the eventuality of greater packer spending in the country. Yet it hasn't happened yet, and the delay is no doubt keeping some nervous. Beef cut-outs are significantly higher at midday, up 0.89 (choice, $204.98) to $1.91 (select, $195.67) with very light box movement (26 loads of choice cuts, 10 loads of select cuts, zero loads of trimmings, 9 loads of coarse grinds).

FEEDER CATTLE:

Feeder futures are also mixed in late morning traffic (i.e., up 92 to off 20). Following the general pattern in the live market, nearby issues are outperforming deferred. Trade volume is very light.

LEAN HOGS:

Lean hogs contracts open lower, pressured by long liquidation, late week profit taking, and signs of struggling product demand. At this time, prices are mostly 40 to 130 points lower. Only spot December is trading modestly in the black. Carcass value at midday is moderately lower, pressured by softer demand for butt, rib, ham, and belly cuts. Pork cut-out: $71.03, off .69. CME cash lean 11/23: 55.50, up .13 (DTN Projected lean index for 11/24: 55.64, up 0.14).

John Harrington can be reached at feelofthemarket@yahoo.com

Follow John Harrington on Twitter @feelofthemarket

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