DTN Midday Livestock Comments 12/06 12:37
Meat Futures Mixed in Late-Week Trading
The cattle complex is narrowly mixed near midday with inconsistent spreading
responsible for most of the volume. Lean hog futures are also uneven, though
spot December continues to lose ground to the rest of the pit.
By John Harrington
DTN Livestock Analyst
Cash cattle business at midday is limited to a few clean-up deals in the
North at $208. Bids of $132-$133 are noted in Colorado and Western Nebraska.
Steers and heifers still on showlists are priced around $133 in the South and
$210-plus in the North. According to the midday report, the national hog base
is 0.59 higher compared with the Prior Day settlement ($76.00-$81.50, weighted
average $78.46). Corn futures are 1-2 cents lower at this time, pressured by
further weakness in wheat and beans. The stock market is running higher near
midday thanks to an upbeat November jobs report that documented the jobless
rate falling to a five-year low. The Dow is 175 points higher with the Nasdaq
positive by 31.
Futures closed mostly 2 to 30 lower. The live pit is modestly lower at
midday in lackluster trading. The lack of buying interest in the wake of
Thursday's board crash suggests that many traders remain nervous relative to
late-year beef demand. Beef cut-outs at midday are significantly lower, off
0.39 (choice, $202.02) to $1.94 (choice, $187.68) with light box movement (39
loads of choice cuts, 16 loads of select cuts, 16 loads of trimmings, 15 loads
of coarse grinds).
Futures closed mixed, up 22 to off 10. Trade volume is extremely light in
late morning business. Modest strength in January and March suggests some
bull-spreading interest, but significant features and trading strategies are
very difficult to identify at this time.
Futures closed mostly 5 to 57 lower. Lean futures are mostly lower near the
noon hour with nearbys losing more ground than deferreds. Further erosion in
the live trade suggests the index will soon fall lower, once again making board
premiums look vulnerable. Carcass value at midday is sharply lower thanks to
poor demand for loin, ham, and belly cuts. Pork cut-outs: $87.48, off $1.85.
CME cash lean index for 12/04: 82.91, up .22 (DTN Projected lean index for
12/05: 82.46, off .45).
John A. Harrington can be reached at email@example.com
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