Feedlot country is quiet at midday as packers complete the gathering of new showlists. Numbers appear to be mixed, greater in the North and smaller in the South. Overall, the early month offering looks about steady with last week. According to the midday report, the national hog base is 0.61 lower compared with the Prior Day settlement ($52.00-58.00, weighted average $55.68). Corn futures are significantly higher at midday (generally 10-12 cents higher), supported by heavy rainfall over the weekend, flooding, and spillover buying from wheat. Equities are generally firm at midday with the Nasdaq up 15 points and the Nasdaq positive by 40.
LIVE CATTLE:
Although today's business here has been on the choppy side, live issues are mostly lower at this time (i.e., off 22 to 65). Signs of buyers taking a break (i.e., sliding some profit off the table) certainly seem understandable in the wake of last week's price surge. Yet the board's discount structure still seems extreme vis-a-vis the recent impressiveness of the recent feedlot trade. Beef cut-outs are sharply higher at midday, up $1.32 (select, $209.00) to $2.42 (choice, $224.20) with very light box movement (11 loads of choice cuts, 11 loads of select cuts, 7 loads of trimmings, 8 loads of coarse grinds).
FEEDER CATTLE:
Feeder contracts are sharply lower near the top of the noon hour, generally 167 to 245 in the red. Besides long liquidation and profit taking, feeders are being hammered by today's run-up in corn prices (and fear of more of the same). On an estimated run of 6,000 head (down from 9,053 last week and near steady with a year ago), Oklahoma City is trading $3-7 higher in the early rounds.
LEAN HOGS:
Lean hog futures are mostly lower at midday with only a few months in the far deferred showing a little green. Summer months are moderately lower, checked by profit taking and long liquidations. The carcass value at midday is moderately higher with stronger demand for bellies and butts overshadowing weakness in loin and ham cuts. Pork cut-out: $74.89, up .43. CME cash lean index for 04/27: 59.64, off .07 (DTN Projected lean index for 04/28: 59.88, up .24).
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