DTN Midday Livestock Comments

GENERAL COMMENTS:

Action in feedlot country is typically slow for a Monday as packers limit their efforts to the collection of new showlists. Ready numbers appear to be mixed, larger in the South and smaller in the North. Overall, the midmonth offering appears to be about steady. Asking prices are not well defined but they will most likely be higher (e.g., $130 plus in the South). According to the midday report, the national hog base is .90 lower compared with the Prior Day settlement ($51.00-55.25, weighted average $55.16). Corn futures are 4-5 cents lower, pressured by long liquidation and a general lack of buying interest. The stock market is higher near the top of the new hour with the Dow up 110 and the Nasdaq positive by 30.

LIVE CATTLE:

Live contracts are 17 to 102 higher at midday, much as they’ve held all morning. Early week bulls are psyched by the recent show of cash strength, and largely confidence that the country show is not done in the regard. Last week’s 5-area steer average totaled $128.01, a buck and a half plus over spot April at this time. Beef cut-outs are sharply higher at midday, up $1.44 (choice, $213.52) to $1.58 (select, $201.06) with light box movement (19 loads of choice cuts, 11 loads of select cuts, 4 loads of trimmings, 25 loads of coarse grinds).

FEEDER CATTLE:

Triple-digit gains dominate the feeder market at the time with prices mostly 120 to 202 points higher than last Thursday’s close. On an estimated run of 6,000 head (down from 8,209 last week but near even with a year earlier), Oklahoma City has sold feeder steers and heifers $2-4 higher in the early rounds. Lower action in the corn trade is also supportive here.

LEAN HOGS:

Early-week business is fairly listless with bulls and bears uncertain about the timing of the seasonal trend. At this time, prices are 7 to 57 lower thanks to lower cash sales and a lack of buying interest. The pork carcass value at midday is moderately higher, supported by strength in all primals except the ham. Pork cut-out: $75.25, up .67. CME cash lean index for 04/13: 63.19, off .49 (DTN Projected lean index for 04/14: 62.59, off .60).

John A. Harrington

(ES)

Copyright 2017 DTN/The Progressive Farmer. All rights reserved.