The feedlot trade is very quiet near midday with just a few scattered bids noted in parts of the North. Asking prices on the balance of showlists are priced around $128 in the South and $205 in the North. According to the midday report, the national hog base is 0.86 higher ($62.00-71.50, weighted average $69.51). Corn futures are a penny or so lower moving toward the noon hour thanks to profit taking and caution ahead of possible interest rate changes to be announced this afternoon. The stock market at midday is higher with the Dow up 137 points and the Nasdaq positive by 22.
LIVE CATTLE:
Currently, live contracts are 50 to 102 lower. It would appear that some traders are worried that the early-year cash rally is running out of gas. While some are saying Southern cash is already done for the week, more business is expected in the North, the tone of which could eventually make a difference here. Beef cut-outs are moderately higher at midday, up 0.29 (select, $204.66) to 0.66 (choice, $210.35) with light to moderate box movement (37 loads of choice cuts, 13 loads of select cuts, 5 loads of trimmings, 17 loads of coarse grinds).
FEEDER CATTLE:
Feeders seem to be following the live market lower. Prices are 75 to 145 lower near the top of the noon hour. Some of the defensiveness may be tied to caution ahead of the January 1 inventory doe out this after noon (2:00 CST). Having said that, inventory data is rarely considered to have market-moving potential.
LEAN HOGS:
Spot February is 72 points higher as of this writing, supported by the premium of the cash index as well as further reports of cash strength in the country this morning. Yet the balance of the lean field is 20 to 70 lower thanks to long liquidation and technical selling. Carcass value is moderately higher at midday, supported by stronger demand for butts, picnics, and ribs. Pork cut-out: $83.03, up 0.47. CME cash lean index for 01/29: 73.84, up 0.01 (DTN Projected lean index for 01/30: 73.85, up 0.01).
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