DTN Midday Livestock Comments 03/03 11:51
Meat Futures Retreat Near Midday
The cattle complex is significantly lower near the top of the noon hour,
pressured by long liquidation and profit-taking. Hog contracts are also under
pressure at midday with summer issues losing ground to both nearbys and far
By John Harrington
The cash cattle trade is not established Tuesday; nary a bid is reported
around the feeding circuit. Some showlists have been priced in the neighborhood
of $162 in the South and $255-$260 in the North. Few expect to see much
business before Thursday or Friday. According to the midday report, the
national hog base is .06 higher compared with the prior day's closing weighted
averaged ($57-$66.50, $64.18). The corn market is a penny or so higher in a
largely featureless trading session. U.S. stocks are off recent records at
midday as investors weighed international headlines and auto sales that missed
expectations. The Dow is 135 points lower with the Nasdaq off 48.
Futures are mostly 97 to 160 lower. Spec and commercials appear to be having
second thoughts about Monday's impressive surge, at least momentarily.
Triple-digit losses dominate most of the pit, pressured by long liquidation,
profit-taking, and outside markets. Beef cut-outs are mixed at midday, up $1.03
(choice, $249.70) to off .47 (select, $244.98) with light box movement (34
loads of choice cuts, 11 loads of select cuts, 6 loads of trimmings, 14 loads
of ground beef).
Futures are mostly 85 to 147 lower. Feeders are beating a retreat at midday,
spooked in part by the defensiveness in the live pit. Traders still seem
serious about the significance of the 200 level. Can it be reconfirmed as a
decent trading floor, or does it threaten to become the new ceiling?
Futures are mostly 10 to 25 higher. Lean futures are under pressured at
midday thanks to a combination of long liquidation and profit-taking. The
defensive also seems to be related to fears that mounting pork tonnage will
overwhelm seasonal demand. The carcass value eroded further at midday,
pressured by softer sales of loins and bellies. Pork cut-out: $68.90, off .77.
CME cash lean 02/27: 65.59, up 1.10 (DTN Projected lean index for 03/02: 66.67,
John Harrington can be reached at firstname.lastname@example.org
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