DTN Midday Livestock Comments 08/10 12:02

DTN Midday Livestock Comments 08/10 12:02 Lean Hog Futures Going Nowhere Fast at Midday Hog futures are narrowly mixed at midday in very slow trade volume. The cattle complex at the CME is moderately lower in the live trade and mixed in the feeder market. By John Harrington DTN Livestock Analyst GENERAL COMMENTS: The cash cattle trade is not tested at midday with business essentially done for the week. What's left of showlists are priced around $116 in the South and $185-186 in the North. Having said that, we haven't really seen any packer bids. According to the midday report, the national hog base is $1.07 lower ($76.00-80.50, weighted average $77.91). The new supply and demand table for corn just released looks bearish (e.g., 14.2 billion bushes estimated for new production with a BPA yield of 169---lower than 2016 but a good deal above trade guesses). Accordingly, corn futures are 10-11 cents lower as we move toward midday. International tension surrounding North Korea seem to be taking a toll on U.S. stocks today. Currently, the Dow is off 148 points with the Nasdaq down by 115. LIVE CATTLE: Live futures are moderately lower near midday with prices in the red by 57 to 90 points. The trade is pressured by long liquidation and follow-through selling. Suggestions of cheaper corn ahead probably doesn't help since carcass weights stand to get larger in such an environment. Beef cut-outs are mixed at midday, up 0.10 (select, $196.71) to off 0.63 (choice, $201.03) with light to moderate box movement (36 loads of choice cuts, 18 loads of select cuts, zero loads of trimmings, 17 loads of coarse grinds). FEEDER CATTLE: Feeder contracts are mixed near the top of the noon hour, saved a bit from follow-through selling and struggling deferred live futures by sharply lower corn prices and the promise of cheaper feeding costs ahead. LEAN HOGS: Late-morning action in the lean hog trade is slow with contracts casually drifting in a narrow range. At this time, prices spread between a gain of 37 points and a loss of 20. Carcass value at midday is quoted moderately higher, supported by better demand for all primals except the ham and loin. Pork cut-out: $95.46, up 0.40. CME cash lean index for 08/08: 85.62, off 0.14 (DTN Projected lean index for 08/09: 85.50, off 0.12). John A. Harrington can be reached at [email protected] (BE) Copyright 2017 DTN/The Progressive Farmer. All rights reserved.