Oddly, the cash cattle trade is showing some life early in the week. Indeed, a few scattered sales have been reported in Kansas and Nebraska at $126, roughly $1 lower than last week. Additionally, we've seen a few bids in the North at $198. Some showlists in the South have been priced around $130. Meaningful trade volume could develop earlier than normal with week if stringer basis realities trigger selling interest. According to the midday report, the national hog base is .21 higher ($62.00-70.50, weighted average $69.37.). The corn market near high noon is several cents higher, supported by HRW and drought concerns. The stock market is pulling sharply lower at midday with the Dow off 335 points and the Nasdaq down by 58.
LIVE CATTLE:
Although live issues have been under pressure for most of the morning, prices appear to be recovering some as we head toward the top of the noon hour. Some hedged cattle have traded this morning, so this midday boost could be tied in part to commercials covering shorts. After being socked by triple-digit losses earlier, prices are now off only 17 to 70. Beef cut-outs are moderately higher at midday, up .67 (select, $204.80) to .82 (choice, $209.93) with light to moderate box movement (30 loads of choice cuts, 20 loads of select cuts, zero loads of trimmings, 8 loads of coarse grinds).
FEEDER CATTLE:
Feeders have also recovered significantly from early selling. Prices are currently no worse than mixed in light trade volume.
LEAN HOGS:
Unlike the choppy action in the cattle complex, lean hogs have been consistently lower through midday. Currently, prices are off 25 to 90. Spot February is seeing the least damage, holding close to steady thanks to the premium of the cash index. Carcass value at midday is modestly lower as better loin demand is overshadowed by weakness in butts, picnic, and ribs. Pork cut-out: $82.73, off 0.08. CME cash lean index for 01/26: 73.83, up 0.06 (DTN Projected lean index for 01/29: NA).
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