DTN Midday Livestock Comments
Livestock Futures Post Mixed Prices at Midday
Some preliminary bids are circulating in parts of feedlot country today (e.g., $121 in Texas; $193 in Nebraska), but certainly nothing to trigger seller excitement. Some showlists have been priced around $126-127 in the South and $200 in the North.
Significant trade volume will no doubt be delayed until sometime Friday. According to the midday report, the national hog base is $1.46 higher ($55.50-64.50, weighted average $61.88). The corn market is 1-2 cents lower near midday, modestly checked by the same-o-same-o large supply realities and lackluster demand. Encouraged by strong jobs data (i.e., 250,000 positions added in December), the stock market is quite strong at midday with the Dow up 155 points and the Nasdaq better by 9.
LIVE CATTLE:
Live futures are mixed at midday, ranging from 2 higher to 37 lower. Buyers trying to push the market higher through midsession, but now appear to running out of gas. Specs and commercials are probably just cautioujs as they wait for the surfacing of concrete cash nws. Beef cut-outs are mixed at midday, up $1.23 (select, $200.39) to off .04 (choice, $200.39) with light to moderate box movement (58 loads of choice cuts, 12 loads of select cuts, 5 loads of trimmings, 6 loads of coarse grinds).
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FEEDER CATTLE:
Supported by the substantial premium of the cash index, spot January is modestly higher as of this writing. Yet the balance of the market is moderately lower, pressured by long liquidation and soft deferred live cattle targets.
LEAN HOGS:
Lean futures are mostly higher at midday, but not by enough to generate much enthusiasm. Currently, prices range from 47 higher to 55 lower. You might thanks another impressive round of higher cash news would be more inspirational. But keep in mind spot February came into the year more than $8 above country business. For the moment, Feb may be content just to watch the cash trade catch up. The carcass value at midday is quoted modestly lower as softer demand for picnics, ribs, and hams overshadow belly and butt strength. Pork cut-out: $78.59, off .17. CME cash lean index for 01/02: 62.75, up .52 (DTN Projected lean index for 01/03: 63.63, up .88).
john.harrington@dtn.com
John A. Harrington can be reached at john.harrington@dtn.com
(BE)
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