The cash cattle trade at midday is light to moderate (with the best test evident in the South at $124, $1 lower). A few dressed deals in the North have been marked at $192. According to the midday report, the national hog base is 0.45 lower ($56.00-61.75, weighted average $59.96). The corn trade is fractionally higher, tentatively supported by short covering prior to new WASDE report due out tomorrow. The stock market near the top of the hour is mixed with the Dow off 3 points and the Nasdaq up 6.
Live contracts are crashing at midday with prices off 145 to 232. Midweek bearishness appeared to be tied to long liquidation, technical selling, and signs of lower feedlot sal,es. Beef cut-outs are significantly higher at midday, up 0.73 (choice, $213.37) to $1.42 (select, $199.10) with light box movement (39 loads of choice cuts, 15 loads of select cuts, 11 loads of trimmings, 12 loads of coarse grinds).
Feeder issues are breaking along with their live counterparts with prices currently off by 265 to 322 points. Nearby contracts have now fallen several hundred points below the cash index.
Lean hog futures are moderately lower at midday, off mostly 27 to 87 points. Beside further erosion in the cash hog trade, this market is no doubt pressured some by spillover selling from the cattle complex. The carcass value is sharply lower, pressured by all primals, especially bellies and picnics. Pork cut-out: $79.95, off $1.09. CME cash lean index for 11/06: 68.66, off 0.29 (DTN Projected lean index for 11/07: 68.35, off 0.31).
John A. Harrington can be reached at firstname.lastname@example.org
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