DTN Midday Livestock Comments 03/05 11:57
Lean Hog Futures Slump Lower at Midday
Lean hog futures are under pressure in late-morning business, checked by
profit taking and uncertain fundamentals. On the other hand, action if the
cattle complex is uneven with prices mixed in the live pit and mostly higher in
the feeder market.
By John Harrington
Packer inquiry in cattle feeding country is generally light with scattered
bids of $157 in the South and $250-254 in the North. Asking prices remain firm
around $162 in the South and $255-260 in the North. According to the midday
report, the Iowa hog base is 0.41 lower compared with the prior day's closing
weighted averaged ($55.00-65.05, $64.48). Corn futures near midday are narrowly
mixed in light trade volume. The stock market is modestly higher near the top
of the noon hour, breaking a two-day decline with a boost from details on
quantitative easing in the euro zone, ahead of Friday's jobs report. The Dow is
30 points higher with the Nasdaq positive by 12.
Mixed, up 15 to off 57. Live futures are mixed at midday in slow trade
volume. The uneven tone seems tied to a combination of residual buying and
profit taking. Here seems to be nervousness on both sides prior to the
development of cash business. Beef cut-outs are higher at midday, up .23
(select, $247.46) to 0.33 (choice, $248.91) with light to moderate box movement
(59 loads of choice cuts, 13 loads of select cuts, five loads of trimmings, 23
loads of ground beef).
Mostly 25 to 112 higher. Although spot March is currently 22 points lower,
checked by the discount of the cash index, most feeder contracts are extending
gains scored on Wednesday. The pit is supported by follow-through buying and
better commercial buying interest.
Off 22 to 145. The lean pit is giving back much of yesterday's rally at
midday. Summer contracts are especially getting clobbered with triple digit
losses. We're hearing more talk about supply worries, ideas that tonnage
through te entire year could be compounded by both higher slaughter rates and
heavier carcass weights. Carcass value at midday is under pressure with all
primals struggling with softer demand except the picnic. Pork cut-out: $68.49,
off $1.49. CME cash lean 03/03: 67.73, up 1.06 (DTN Projected lean index for
03/04: 68.09, up 0.36).
John Harrington can be reached at firstname.lastname@example.org
Follow John Harrington on Twitter @feelofthemarket
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