The cattle complex is significantly lower near the top of the new hour, showing further determination to ignore cash premiums. Lean hog issues are moderately lower, pressure by reports of softer cash business.
Activity in feedlot country at midday is limited to the distribution of new showlists. The offering looks mixed, larger in the South (especially Texas) and some smaller in the North. Overall, fed supplies look generally larger. Some asking prices have been suggested at $5 over spot April. According to the midday report, the national hog base is .80 lower ($59.00-61.06, weighted average $60.61).
Corn futures are fractionally lower headed toward the top of the noon hour linked to a general lack of news and buying interest. The stock market is mixed near midday with the Dow off 121 points and the Nasdaq higher by 33.
Although live contracts opened only modestly lower, it didn’t take long for selling interest to find more energy. Prices are currently 27 to 167 lower with most of the selling pressure focus on the front-end. Indeed, the trade has pretty much taken back all of Friday’s short covering rally. Needless to say, many here seem confident that cash strength just can’t last much longer. Time will tell.
Beef cut-outs are modestly higher at midday, up 0.09 (choice, $224.23) to 0.20 (choice, $217.46) with very light box movement (19 loads of choice cuts, 10 loads of select cuts, 11 loads of trimmings, 8 loads of coarse grinds).
Feeder futures are following the negative lead of the live trade in late morning action. Prices are currently 22 to 120 lower than ks to renewed long liquidation and technical selling. On an estimated run of 9,250 head (up from 7,029 last week and 6,592 in 2017), Oklahoma City is lightly tested in the early going, though a steady undertone is noted.
The March sell-off in lean hog futures continues at midday. Contracts are moderately lower as of this writing, off 37 to 67 points for the most part. Softening cash bids makes it tough for spot April to make a stand. Carcass value at midday is moderately higher, supported by better demand for hams, ribs, and picnics.
Pork cut-out: $83.03, up 0.47. CME cash lean index for 03/08: 67.52, off 0.12 (DTN Projected lean index for 03/09: 67.05, off 0.47).