DTN Midday Livestock Comments

GENERAL COMMENTS:

Significant trade volume will probably be postponed until Thursday or Friday. According to the midday report, the national hog base is .80 higher compared with the Prior Day settlement ($60.00-67.00, weighted average $64.75). Corn futures are generally 2 cents higher in late morning biz, modestly boosted by short covering in light volume. The Dow is 134 points higher with the Nasdaq positive by 25.

LIVE CATTLE:

Live futures are moderately lower near the top of the noon hour with the trade once again choosing to ignore the status of feedlot prices. Losses currently range from 15 to 32 points, checked by follow-through selling and long liquidation. Beef cut-outs are lower at midday, off 0.07 (choice, $193.20) to 0.37 (select, $188.56) with light box movement (29 loads of choice cuts, 8 loads of select cuts, 8 loads of trimmings, 16 loads of coarse grinds).

FEEDER CATTLE:

Feeders are moderately lower near midday, following the defensive lead of live futures. The market is also drooping thanks to a lack of buying interest right before the release of the annual cattle inventory scheduled for the afternoon at 2:00 CST. Needless to say, confirmation of greater herd expansion could way heavily upon feeder prices as feedlots lean into greater calf and yearling numbers in search of more attractive feeding margins.

LEAN HOGS:

Triple-digit gains dominate the first four contracts here thanks to improving fundamentals, technical buying, and bull spreading. Note that spot Feb has jumped ahead of the cash index for the first time in months. The carcass value is sharply higher at midday, aggressively supported by all primals except the loin. Note belly demand remains on fire with the belly primal marked $7.64 higher. Pork cut-out: $85.49, up $2.01. CME cash lean index for 01/24: 67.73, up 0.53 (DTN Projected lean index for 01/30: 65.89, up 1.45).

John A. Harrington can be reached at john.harrington@dtn.com

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