Feedlot country is typically quiet near Monday
noon as packers complete the collection of new showlists. This week's
offering looks modestly larger than last week, yet very closed to
unchanged. Asking prices are not yet defined, but one can only assume
they will be sharply higher (e.g., $130-$132 live) given the runaway
pace of the last two weeks. According to the midday report, the national
hog base is $0.55 lower ($56.50-$64.36, weighted average $61.03). The
corn market is fractionally higher in slow, late-morning business. The
stock market is higher, supported by the aggressive Broadcom bid for
Qualcomm. The Dow is currently 8 points higher, the same as the Nasdaq.
LIVE CATTLE:
Live futures are significantly lower as business
moves toward the noon hour. Spot December and February are catching
most of the early week heat, suggesting bull-spreaders taking profits in
the wake of last week's big rally. Beef cut-outs are significantly
higher at midday, up $0.51 (choice, $209.25) to $1.45 (select, $194.53)
with light box movement (28 loads of choice cuts, 14 loads of select
cuts, 11 loads of trimmings, 12 loads of coarse grinds).
FEEDER CATTLE:
Feeders are retreating by triple digits near
midday (i.e., off 110 to 147), a function of bulls taking profits and
technicians reacting to overbought conditions. Volume is said to be
quite light.
LEAN HOGS:
Lean hog futures are narrowly mixed at this time
with prices ranging from 20 higher to 30 lower. It's really a pretty
listless trading affair so far, suggesting that specs and commercials
are waiting to garner more clues regarding slaughter size and pork
demand potential through the balance of the year's final quarter.
Carcass value at midday is lower, primarily thanks to softer demand for
bellies and picnics. Pork cut-out: $79.84, off $0.24. CME cash lean
index for 11/02: $69.28, off $0.14 (DTN Projected lean index for 11/03:
$68.95, off $0.33).
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