DTN Midday Livestock Comments
Cattle Futures Explode With Triple-Digit Gains at Midday
Light cattle trading is evident in late-morning business in parts of Texas (i.e., $117-$118, steady/firm with last week). Elsewhere, cash action is very slow as feedlot managers dig in with higher asking prices (i.e., $120 live; $190 plus dressed). The National dressed hog base at midday in quoted $0.62 higher ($43-$50.50), with a weighted average of $40.43. Corn futures are modestly higher through the noon hour, supported by further strength in beans and some worries about planting conditions. The stock market is rebounding at midday thanks to talk that an attack upon Syria may be delayed. The Dow is currently 335 points higher with the Nasdaq up by 77.
LIVE CATTLE:
Live cattle futures opened higher thanks to a few signs of cash firm and has continued to strengthen through the morning. Indeed, once spot April punched through resistance at 115, technical buying seemed to accelerate. Beef cut-outs are higher midday, up $0.04 (select, $213.11) to $1.01 (select, $201.62) with light-to-moderate box movement (40 loads of choice cuts, 30 loads of select cuts, zero loads of trimmings, 11 loads of coarse grinds).
FEEDER CATTLE:
Feeders are following the bullish lead of the live market with triple-digit gains securely in place from fore to aft near the top of the noon hour. Clearly, the rising targets of deferred live issues is giving commercial buyers more attractive targets to shoot at.
LEAN HOGS:
Though a step or two behind the bullishness on display in the cattle markets, lean hog contracts are nonetheless putting in a good day. The first four contracts are gaining on the far deferreds as traders seem to feel more eager to anticipate the seasonal summer rally. The carcass value at midday is moderately higher thanks to firmness in fresh cuts and a significant recovery of the belly primal (up $6.86). Pork cut-out: $66.55, off $0.48. CME cash lean index for 04/10: $53.02, up $0.53 (DTN Projected lean index for 04/11: $52.97, off $0.05).
(SK)
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