Packer inquiry in cattle country remains very quiet with significant business possibly delayed until Friday. Some asking prices are around $110 plus in the South and $172-174 plus in the North. Hog buyers this morning are working with bids ranging from 0.50 to $1.50 lower (mostly $1-1.50 lower). Corn futures are fractionally mixed in lackluster, pre-harvest action. The stock market is softer in the early going with the Dow off 29 points and the Nasdaq down by 33.
Live prices are mixed in the early going, up 45 to off 12, as traders adjust in the wake of yesterday's big surge forward.
Significant technical progress was definitely scored by bulls at midweek, Nevertheless, it make sense that traders may pause to position themselves before the development of late week cash and on feed news, Open interest on Wednesday increased by 4,068 (330,826).
Spot October liquidated by 6,418 (66,392) and December jumped by 5,926 (133,451). DTN projected slaughter for today is 117,000 head.
Generally speaking, feeder contracts are moderately as business moves toward midmorning (off 5 to 52). Profit taking is understandable given the price progress scored earlier in the week.
Furthermore, spot September is now sitting nearly $3 above the cash index—that quite a lead given the fact that expiration is right around the corner. Open interest on Wednesday increased by 1,468 (55,620).
CME cash feeder index for 09/19: 150.46, off .01.
Currently, lean hog issues are moderately lower (off 7 to 75). Nearbys continue to lose ground to deferreds, a testimony to both negative fundamentals and the popularity of bear spreading. Open interest on Wednesday decreased by 2,516 (263,739). Spot October liquidated by 9,557 (51,850) and December surged by 4,914 (112,173).
Cash lean index 09/19: 60.92, off 0.96. DTN projected slaughter for today is 453,000 head.
John A. Harrington
© Copyright 2017 DTN/The Progressive Farmer. All rights reserved.