DTN Midday Livestock Comments 04/24 12:19
Cattle Benefits from Bullish Momentum at Midday
For the most part, cattle futures are sharply higher near the top of the
noon hour, powered by late-week short covering and technical buying. Lean hog
contracts at this time are mixed, though months in the black outnumber those in
By John Harrington
DTN Livestock Analyst
Cattle buying interest is light to moderate in parts of the North with bids
generally around $253-$255. Limited trade volume totals suggest that packers
need to buy more live inventory before calling it a week. Asking prices are
around $160 in the South and $256-plus in the North. According to the midday
report, the Iowa hog base is not quoted due to rules of confidentiality. Corn
futures are about a nickel lower at midday, reined in by planting-friendly
weather forecasts. Equities are trading mostly higher at midday as investors
continue to cheer major earnings reports. The Dow is currently 42 points higher
with the Nasdaq positive by 43.
Up 67 to 227. Live issues opened lower, but it didn't take long before bulls
reassembled to fund another round of triple digit gains. Prices are sharply
higher going into the week's final hour of business, supported by short
covering and technical buying. Loo 2015 contracts have now move back over
100-day moving averages. Beef cut-outs are sharply lower at midday, off $1.23
(choice, $258.78) to $1.76 (select, $249.28) with light box movement (43 loads
of choice cuts, 17 loads of select cuts, zero loads of trimmings, seven loads
of ground beef).
Mostly 217 to 282 higher. While spot April is lagging behind with the cash
index, the balance of the feeder pit has once again exploded higher. The
bullishness of the live pit is obviously supportive, but so is the corn
market's lackluster tone as well as decent spring rains over major grazing
Mostly 15 to 87 higher. Though a few far deferred contracts are modestly
lower in late morning business, most lean contracts are holding moderately
higher. Renewed enthusiasm in the cattle complex represents a positive factor.
It will be interesting to see if summer contracts can close the week over chart
resistance at 80. The carcass value is some lower at midday as ham and rib
losses overshadow loin and picnic gaisn. Pork cut-out: $69.38, off 0.29. CME
cash lean 04/22: 65.18, up 0.08 (DTN Projected lean index for 04/23: 65.39, up
John Harrington can be reached at email@example.com
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