Feedlot country is very quiet as players complete the distribution of new showlists. Ready numbers appear to be somewhat larger than last week with only Kansas offering a few less steers and heifers. According to the noon report, the national hog base is not tested due to rules of confidentiality. Corn futures are several cents higher at midday, supported by spillover buying from the bean trade and positive implications stemming from better U.S./China trade relations. The stock market is sharply higher in the wake of the truce declared in the trade war. The Dow is 305 points higher with the Nasdaq better by 44.
LIVE CATTLE:
Live issues are sharply higher at midday with prices range 147 to 257 in the green. While there's no certainty regarding better beef demand from China, the mere possibility has sparked serious buying, probably in part because charts were oversold to begin with. Beef cut-outs are lower at midday, off 0.34 (select, $208.12) to $1.01 (choice, $231.20) with light to moderate box movement (22 loads of choice cuts, 14 loads of select cuts, 13 loads of trimmings, 13 loads of coarse grinds).
FEEDER CATTLE:
Triple-digit gains dominate here as well at midday (i.e., up 147 to 272) as feeders follow the bullish lead of the live market. On an estimated run of 9,300 head (down from 10,070 last week but up from 5,516 last year). Oklahoma City has not adequately tested the feeder market as of yet. A limited amount of calves have sold with a lower undertone.
LEAN HOGS:
It seems a bit surprising, but hog traders are ignoring the possibility of new Chinese potential at midday. Indeed, futures are mostly solidly lower at midday (i.e., off 30 to 90). Traders and analysts are confused as to what the new "nice talk" between negotiators this weekend means relative to tariffs on U.S. pork already in place. Will they now be lifted. No one seems to know. Carcass value looks explosive at midday with all primals quoted sharply high(especially bellies and hams) except for the butt. Pork cut-out: $78.00, up $4.09 CME cash lean index for 05/17: 67.74, up 0.73 (DTN Projected lean index for 05/18: 68.38, up 0.64).
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