Buying interest in feedlot country near midday seems generally light, though a few bids in the North have been renewed at $188. We are surprised that Mandatory Reporting confirmed more than 26,000 head sold in Nebraska on Wednesday, mostly at $118 ($1 higher than last week). Movement was also decent in Kansas (i.e., 15,733, at mostly $116-117). More biz is certainly possible later today and/or tomorrow. Asking prices on the balance of showlists are around $1.20 in the South and $190-192 in the North. According to the midday report, the national hog base is $1.53 lower compared with the Prior Day settlement ($73.00-81.50, weighted average $78.37). Corn futures are fractionally lower at midday, checked by struggling action in the bean trade and more rain in the general forecast. The stock market is mixed at midday with the Dow up 9 points and the Nasdaq off 13.
LIVE CATTLE:
Live prices have been all over the place this morning with traders unsure regarding the significance of yesterday's rally.
Was it a real sign of new respect for cash potential and simply a dead cat bounce? Near midday, contracts are mixed with prices ranging from 45 higher to 10 lower. Beef cut-outs are modestly higher at midday, up 0.19 (choice, $205.25) to 0.47 (select, $197.89) with light box movement (31 loads of choice cuts, 8 loads of select cuts, 5 loads of trimmings, 10 loads of coarse grinds).
FEEDER CATTLE:
For the most part, feeder issues are higher at midday (i.e., generally 5 to 42 points in the green), but well below session highs posted earlier. Of course, the skittishness is tied to the uncertainty in the live market and the reluctance of deferred live contracts to give commercials much to shoot at.
LEAN HOGS:
Lean hog futures are under pressure as we move toward the final hour of the trading day. Prices are generally 50 to 115 lower, threaten to take back much of Wednesday's rally. Selling has presumably resurfaced in large part thanks to struggling carcass values and reports of lower cash hog sales this morning. Carcass value at midday is moderate lower as softer demand for ham, rib, and picnic cuts overshadow belly strength. Pork cut-out: $96.27, off 0.59. CME cash lean index for 08/01: 87.35, off 0.35 (DTN Projected lean index for 08/02: 87.11, off 0.24).
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