Feedlot country is quiet with neither bids nor asking prices well defined. According to the midday report, the national hog base is 0.58 lower ($58.50-61.31, weighted average $60.69). The listless corn trade is about a penny lower as traders move toward the top of the noon hour. No one wants to show their hand before new WASDE reports are released on Thursday.
The stock market is lower at midday with the Dow off 55 points and the Nasdaq is down by 35.
Live contracts are generally 35 to 155 lower near midday thanks to long liquidation and pre-cash profit taking. Recent contract highs (not too far away) represent overhead chart resistance.
Beef cut-outs are significantly higher at midday, up $1.03 (choice, $211.60) to $2.09 (select, $196.06) with light box movement (25 loads of choice cuts, 28 loads of select cuts, zero loads of trimmings, 8 loads of coarse grinds).
Feeder issues are 20 to 100 points lower as of this writing, checked by profit taking and defensiveness in the live cattle market. Feeders, like their live counterparts, seem ready for a rest given the size of the October rally.
Lean issues are moderately lower as the trade moves into the session's final hour. Some traders are worried that fundamentals (especially supply) as we cut our way through the balance of the fourth quarter. Carcass value was quoted sharply higher at midday with all primals reflect decent appreciation. Pork cut-out: $81.38, up $1.13. CME cash lean index for 11/03: 68.95, off 0.33 (DTN Projected lean index for 11/06: 68.66, off 0.29).
John A. Harrington can be reached at email@example.com
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