The cash cattle trade is not tested at midday
with buyers and sellers essentially satisfied following Wednesday's big
market. According to the midday report, the national hog base is .89
lower compared with the Prior Day settlement ($57.00-64.50, weighted
average $62.88). Corn futures are generally 6 cents higher in late
morning business, supported by late week short covering and planting
uncertainty. Pressured by falling oil prices, the stock market is mixed
near midday with the Dow off 19 points and the Nasdaq up 4.
LIVE CATTLE:
Live futures are being clobbered with
triple-digit losses nearby midday with spot June and August currently
down the 300-point limit. Volatility begets volatility. In other words,
while this kind of action takes our breath away, we're not really
surprised given the wild prices swings seen through much of the spring.
For the record, spot June is now trading close to $20 below top feedlot
sales inked earlier this week. Beef cut-outs are significantly higher at
midday, up $1.16 (select, $218.00) to $2.19 (choice, $237.77) with very
light box movement (10 loads of choice cuts, 12 loads of select cuts, 1
load of trimmings, 11 loads of coarse grinds).
FEEDER CATTLE:
What goes up, must come down (and vice-versa?).
Feeders are sharply as we move toward the final hour of trading. August
through October have slumped 450 points lower (i.e., the daily limit).
The selling seems tied to profit taking and big losses that have surfaced in deferred live cattle,
LEAN HOGS:
The action here is very tame here compared to
the street fight slugged out in the cattle complex. Prices are slowly
chopping in a narrow range with prices up 27 to off 12. The carcass
value at midday is moderately higher, supported by all primals except
the butt and ham. Pork cut-out: $76.51, up 0.20. CME cash lean index for
05/03: 62.24, up 1.10 (DTN Projected lean index for 05/04: 63.55, up
1.31).
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