The fed cattle trade is at a standstill at
midday with business apparently done for the week. Just so-so trade
volume totals suggest that some yards will carryover unsold steers and
heifers. On the hand, the final weekly slaughter total might imply fully
adequate country movement. According to the midday report, the national
hog base is 0.54 lower ($73.00-79.50, weighted average $77.98). Corn
futures are 2-3 cents higher near the top of the noon hour, supported by
some late week profit taking in light trade volume. Equities at midday
are rebounding from Thursday sell-off with the Dow up 36 points and the
Nasdaq positive by 33.
LIVE CATTLE:
Live contracts are 20-45 points higher at
midday, no more than a modest bounce in the wake of Thursday's crash
(not to mention the bearish price swing suffered earlier in the week).
Barring a major late-session rally, live charts will look pretty
miserable by the time the CME turned off the lights for the week. Beef
cut-outs are mixed at midday, up .16 (select, $196.35) to off 0.86
(choice, $199.77) with light box movement (33 loads of choice cuts, 6
loads of select cuts, 2 loads of trimmings, 12 loads of coarse grinds).
FEEDER CATTLE:
Feeder futures are narrowly mixed in late
morning business (i.e., up 27 to off 20). Given the way spot August is
dragging its heels so far behind the cash index, many traders must
assume the sale barns will have a tough time filling the bleachers will
robust demand through the end of the month.
LEAN HOGS:
Following the same pattern that has dominated
all week, lean hog futures are mixed at midday with nearby contracts
higher and deferred issues lower. Keep in mind that spot August is
scheduled to expire on Monday. Carcass value at midday is moderately
higher with all primals quoted stronger expect a $1.50 loss tied to the
loin composite. Pork cut-out: $95.56, up 0.39. CME cash lean index for
08/09: 85.50, off 0.12 (DTN Projected lean index for 08/09: 85.24, off
0.26).
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