Feedlot country is typically quiet for a Monday as packer collect new showlists. The fed offering appears to be larger in all areas, especially n Texas. While feedlot managers are essentially mum on the subject at this time, we suspect asking prices will start out around $120-121 in the South and $190-192 in the North.
According to the midday report, the national hog base is $2.87 lower compared with the Prior Day settlement ($73.00-77.50, weighted average $77.16). Corn futures are generally 4 cents higher near the top of the noon as traders position ahead of new supply and demand estimates due out later this week. The stock market is higher at midday with the Dow up 24 points and the Nasdaq positive by 25.
LIVE CATTLE:
It would appear that live traders definitely got out of bed this morning on the wrong side. Live prices are 132 to 277 lower at midday with 2017 issues getting hit worse than their new year counterparts. Futures are being pounded thanks to long liquidation and technical selling. Yet regarding the latter, not much has been proven today since the board simply continues to thrash around in a wide range. At this time, we expect traders to respect last week's low of 111.77 basis August. Beef cut-outs are lower at midday, off 0.13 (choice, $203.48) to 0.42 (select, $196.89) with light box movement (21 loads of choice cuts, 11 loads of select cuts, 6 loads of trimmings, 11 loads of coarse grinds).
FEEDER CATTLE:
Feeders are getting clobbered even more than their live counterparts as we prepare to move into the final hour of the session.
Prices are 290 to 375 lower with several issues row resting on 100-day moving averages, On an estimated run of 5,500 head (up from 2,782 last week and near even with 5,789 in 2016), Oklahoma City appears to be trading feeder steers and heifers with a firm undertone in the early rounds with demand described as "good."
LEAN HOGS:
Lean hog contracts are mostly higher near the top of the noon hour (i.e., up 15 to 147). The extremely discounted October issues is particularly successful in attracting new buyers, perhaps because some are beginning to question whether the price cliff waiting this fall will be all that steep. The carcass value is quoted sharply higher at midday with all major primals contributing to the sizable appreciation. Pork cut-out: $97.97, up $2.20. CME cash lean index for 08/03: 86.69, off 0.42 (DTN Projected lean index for 08/04: 86.10, off 0.59).
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