Dakotaland Feeds, LLC

DTN Midday Livestock Comments 04/23 12:03

DTN Midday Livestock Comments 04/23 12:03

Cattle Futures Hold Solid Gains at Midday

The cattle complex is significantly higher near the top of noon hour with
the feeder market plastered with triple-digit gains. Lean hog contracts are
traded in the red through the morning with nearby issues especially pressured
at midday.

By John Harrington
DTN Analyst


The distribution of new showlists has taken up most of the marketing work in
feedlot country this morning. Ready numbers are generally smaller, especially
in Nebraska and Texas. The National dressed hog base at midday is quoted 0.26
lower ($52.00-57.69), with a weighted average of $57.50. Corn futures are a
penny plus higher at midday thanks to light buying interest. The stock market
is mixed near the top of the noon hour with some investor nervous about rising
interest rates. The Dow is currently off 10 with the Nasdaq up 3.


Live cattle futures are 25 to 122 poins higher at midday with the first
three contracts sporting triple digit gains. With spot April moving over 120,
it would appear that traders are more impressed with the strength of recent
feedlot cash than the bearish supply implications of the April 1 on feed repot
unveiled last Friday. Heavily discounted summer contracts are trying to gain
some ground on spot April and country cash, but progress in that regard remains
very modest. Beef cut-outs are sharply at midday, up $1.70 (select, $201.83) to
$2.71 (choice, $214.69) with light box movement (29 loads of choice cuts, 12
loads of select cuts, zero loads of trimmings, 10 loads of coarse grinds).


Feeder buyers have paper the wall of this market at midday with wall-to-wall
triple-digit gains. Rising deferred lice cattle targets are obviously helpful
in this regard. On an estimated run of 5,200 head (down from 8,010 last week
and 9,053 in 2917), Oklahoma City has sold feeder cattle and calves with a firm
undertone in the early rounds with demand described as moderate to good.
However, no definite trends are evident as of this writing.


Lean hog issues are mostly 57 to 105 lower with some worried that April
rally in the cash market is running out of gas. Note that the cash index still
remains a good $1 under spot May. Carcass value is modestly lower at midday
with firm fresh cuts essentially overshadowed by softer demand for ribs and
hams. Pork cut-out: $67.85, off 0.06. CME cash lean index for 04/19: 56.80, up
0.83 (DTN Projected lean index for 04/20: 57.80, up 1.00).

John A. Harrington john.harrington@dtn.com


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