The cash cattle trade is not tested at midday with business essentially done for the week. What's left of showlists are priced around $116 in the South and $185-186 in the North. Having said that, we haven't really seen any packer bids. According to the midday report, the national hog base is $1.07 lower ($76.00-80.50, weighted average $77.91). The new supply and demand table for corn just released looks bearish (e.g., 14.2 billion bushes estimated for new production with a BPA yield of 169—lower than 2016 but a good deal above trade guesses). Accordingly, corn futures are 10-11 cents lower as we move toward midday. International tension surrounding North Korea seem to be taking a toll on U.S. stocks today. Currently, the Dow is off 148 points with the Nasdaq down by 115.
LIVE CATTLE:
Live futures are moderately lower near midday with prices in the red by 57 to 90 points. The trade is pressured by long liquidation and follow-through selling. Suggestions of cheaper corn ahead probably doesn't help since carcass weights stand to get larger in such an environment. Beef cut-outs are mixed at midday, up 0.10 (select, $196.71) to off 0.63 (choice, $201.03) with light to moderate box movement (36 loads of choice cuts, 18 loads of select cuts, zero loads of trimmings, 17 loads of coarse grinds).
FEEDER CATTLE:
Feeder contracts are mixed near the top of the noon hour, saved a bit from follow-through selling and struggling deferred live futures by sharply lower corn prices and the promise of cheaper feeding costs ahead.
LEAN HOGS:
Late-morning action in the lean hog trade is slow with contracts casually drifting in a narrow range. At this time, prices spread between a gain of 37 points and a loss of 20. Carcass value at midday is quoted moderately higher, supported by better demand for all primals except the ham and loin. Pork cut-out: $95.46, up 0.40. CME cash lean index for 08/08: 85.62, off 0.14 (DTN Projected lean index for 08/09: 85.50, off 0.12).
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