Feedlot sales are quite limited near the noon hour with a few pens in Texas at $117.50 and several dressed deals in Nebraska at $187-188. More business is possible over the next several hours, but some are suggesting that trade in the South is essentially done for the week. The balance of showlists seem to be priced around $120 in the South and $190-192 in the North. According to the midday report, the national hog base is .06 lower compared with the Prior Day settlement ($73.00-82.00, weighted average $79.44). The corn market at midday is firmer by several cents, supported in part by disappointing rainfall amounts this week in Iowa and the western Midwest. Equities at midday continued to be supports by solid job growth last month (i.e., 209,000): the Dow is currently 33 points higher with the Nasdaq positive by 8.
LIVE CATTLE:
Live issues are mostly 50 to 82 points lower at midday with only spot August holding close to unchanged. Clearly, bears are still waiting for the supply shoe to drop later this quarter, making the trade in general reluctance to give up large board discounts. Beef cut-outs are mixed at midday, up 0.43 (select, $198.21) to off $1.05 (choice, $204.11) with light to moderate box movement (39 loads of choice cuts, 13 loads of select cuts, 6 loads of trimmings, 17 loads of coarse grinds).
FEEDER CATTLE:
Still such in the same old range, feeder issues are falling back toward its middle and lower end. Prices at midday are 62 to 165 in the red, pressured by lower action in deferred live futures and late week profit taking.
LEAN HOGS:
Late-week short covering is evident in the lean hog trade near midday as nearly prices bounce more than 100 points higher. It would appear that traders are reconsidering the wisdom of such extreme deferred discounts. Barring a late sell-off, December could settle ore than 200 points above the lows of the week. Carcass value is quoted moderately lower at midday, mainly pressured by softer demand for bellies, picnics, and hams. Pork cut-out: $96.07, off 0.68. CME cash lean index for 08/02: 87.11, off 0.24 (DTN Projected lean index for 08/03: 86.69, off 0.42).
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