DTN Midday Livestock Comments 11/13 12:04

DTN Midday Livestock Comments 11/13 12:04 Meat Futures Struggle at Midday, Especially Cattle Contracts Triple-digit losses dominated the cattle complex near the top of the noon hour thanks to aggressive long liquidation and profit taking. Lean hog contracts are also significantly pressured near midday, pressured by spillover selling and abiding nervousness over seasonal fundamentals. By John Harrington DTN Analyst GENERAL COMMENTS: Despite the late hour, the cash cattle arena remains very quiet at midday. We've seen a few scattered bids in $200-202 in parts of the North, but that's about it. Short-bought cattle need to secure inventory, but struggling futures this morning is making them extra cautious. Significant trade volume could be delayed until late this afternoon. According to the midday report, the national hog base is 0.64 lower compared with the Prior Day settlement ($45.00-$52.00, weighted average $50.69). Corn futures are generally 3 cents lower moving toward midday, pressured by bearish weekly export sales and outside markets. U.S. stocks are trading lower, chastened by a continued decline in oil prices and soft reports on the health of the consumer. The Dow is 78 points lower in late-morning business with the Nasdaq off 30. LIVE CATTLE: It would appear that board traders have grown tired waiting for better feedlot sales to surface in the country. Live contracts are sharply lower near midday, off by as much as 150 to 280 points. If the market finishes in the cellar like this, it will be tough to argue that rallies seen earlier this week were anything greater than dead cat bounces. Beef cut-outs are mixed at midday, up 0.46 (select, $200.94) to off $2.43 (choice, $209.37) with light box movement (33 loads of choice cuts, 10 loads of select cuts, zero loads of trimmings, 16 loads of coarse grinds). FEEDER CATTLE: Feeders are getting hammered along with their live counterparts. Yet note that the brutal reality of feedlot red ink keeps insisting that feeders fall at a faster pace than deferred live contracts. Feeder prices at this time are in the red by 172 to 400 points. LEAN HOGS: Nearby lean contracts (i.e., December through April) are sharply lower, pressured by spillover selling from the cattle complex and suggestions that hog/pork realities could easily remain defensive well into December. The carcass value is ugly at midday, down more than $3 thanks to slumping demand for all primals. Pork cut-out: $73.04, off $3.13. CME cash lean 11/11: 58.95, off 0.88 (DTN Projected lean index for 11/12: 57.93, off 0.96). John Harrington can be reached at [email protected] Follow John Harrington on Twitter @feelofthemarket (BAS) Copyright 2015 DTN/The Progressive Farmer. All rights reserved.