Cattle futures continue to slide significantly lower, pressured by long liquidation, commercial selling, and cash uncertainty. Lean hog contracts are also sharply lower at midday, checked by profit taking, cash discounts, and outside markets.
Feedlot country is generally quiet at midday, though some initial bids are noted in both the North and South at $116. Asking prices are not well defined at this point, but it’s fair to say that further selling on the board is no doubt causing a good deal of hand wringing among producers. According to the noon report, the national hog base is 0.59 higher ($56.00-65.00, weighted average $63.33).
Corn futures in late morning business are a penny-plus higher a yawning action. That said, the mere hint of green might be worthy of smattering applause give tough outside markets. The stock market is struggling at midday with traders worried about rising interest rates. The Dow is currently off 208 points with the Nasdaq off 67.
Live contracts are 105 to 195 lower as we move toward the last hour of CME trading. Apparently the board still believes that cash sales will soon collapse over an extended period of time. Prices seem to be falling out of the up trending channel in place since early April.
Beef cut-outs are mixed at midday, up $1.05 (select, $210.17) to off 0.26 (choice, $231.86) with light to moderate box movement (33 loads of choice cuts, 30 loads of select cuts, zero loads of trimmings, 10 loads of coarse grinds).
Triple-digit losses are hammering the feeder market at midday. Again, the faltering targets of deferred live futures are spooking commercial buyers. Feeders seem to be plunging toward the extreme low of April 4 (e.g., 135 basis August).
Lean futures are mostly 122 to 137 lower near midday, pressured by commercial selling, technical concerns, profit taking, and spillover bearishness from the cattle complex. Summer contracts could close the session back below 40-day moving averages, thereby essentially canceling yesterday’s technical progress.
Carcass value at midday is quoted some lower with higher belly and butt biz more than offset by softer sales of hams, picnics, and loins. Pork cut-out: $73.26, off 0.29. CME cash lean index for 05/11: 64.65, up 0.59 (DTN Projected lean index for 05/14: 65.23, up 0.58).