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DTN Midday Livestock Comments          08/01 12:00

   Triple-Digit Losses Swamp Cattle Pits at Midday

   Live and feeder contracts are sharply lower near the noon hour, pressured by 
long liquidation and oblivious-to-near-steady feedlot sales. The lean hog it is 
mixed in late-morning business as nearby contracts lose ground to deferreds. 

By John Harrington
DTN Analyst


   Light trade volume is evident in several areas of cattle feeding country at 
midday. Dressed prices in parts of the North are near steady at $258. Live 
sales in Kansas have been reported at $163, steady/firm with last week's 
weighted average (though some lower from top sales late last Friday. Trade 
volume should slowly increase through the day, though it remains to be seen 
whether or not short-bought packers will be required to move closer to higher 
asking prices. According to the midday report, the national hog base is 2.25 
lower compared with the Prior Day settlement ($111.00-120.00, weighted average 
$117.74). The corn trade is 1-3 cents lower at midday, pressured by foreign 
demand worries and the lack of serious threats to new-crop size. 


   Off 77 to 160. Live contracts gapped lower on the opening as nervous traders 
continue to anticipate discouraging news around the theoretical corner. 
Currently, nearby issues have bounced a good deal off session lows, cheered 
somewhat by steady packer spending in parts of feeding country. Nevertheless, 
pit traders continue to defend extraordinarily large discounts. At this time, 
spot August is trading about $6 under live sales in Kansas and Nebraska. Beef 
cut-outs are mixed at midday, up 0.11 (choice, $263.77) to off $1.89 (select, 
$258.71) with very light box movement (31 loads of choice cuts, 12 loads of 
select cuts, four loads of trimmings, nine loads of coarse grinds).


   Off 67 to 182. Long liquidation is driving prices lower here as well with 
spot August more than $4 below the last cash index calculated by the CME. 
Clearly, the feeder board seems ready to end the week in great contrast to the 
bullish action seen Monday through Wednesday. 


   Mixed, up 45 to off 75. Nearby futures are just modestly lower near midday, 
lightly pressured by bear spreading strategies. Deferred contracts are 
moderately higher, supported by late-week profit taking and technical buying 
prompted by oversold charts. Carcass value is sharply lower at midday with all 
primals except the ham reflecting softer demand. Pork cut-out: $126.98, off 
$2.05. CME cash lean 07/30: 126.83, off 1.01 (DTN Projected lean index for 
07/31: 125.82, off 1.01).

   John Harrington can be reached at feelofthemarket@yahoo.com 

   Follow John Harrington on Twitter @feelofthemarket


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