Feedlot country is generally quiet this morning with just a few bids noted in the parts of the South at $123-124. Indeed, it looks like a few cattle have already traded at the top of that range. Some asking prices have been floated around $127 in the South and $195-200 in the North. The FCE has a total run of 1,191 head. We will post the results later this morning on the cash cattle page ASAP.
The cash hog trade has opened with bids ranging from 0.50-1 lower.
Most buyers are using $1 lower bids. Corn futures are a penny plus lower as traders cautiously position ahead of Thursday's new s&d tables. Currently, the stock market is lower with the Dow off 34 points and the Nasdaq down 2.
Live issues are moderately lower as traders move through the opening hour. Reports of lower feedlot sales in the South seem to be capping the potential of spot December, at least for the short term. Open interest on Tuesday increased by 4,390 (382,670). Spot December liquidated by 5,088 (116,709) and February expanded by 6,270 (116,553). DTN projected slaughter for today is 116,000 head.
FEEDER CATTLE: Feeders are losing ground this morning along with their live counterparts. November and January could start to stabilize given their proximity to the cash index. Open interest on Tuesday increased by 309 (65,658). CME cash feeder index for 11/06: 159.04, off .42.
Hog futures continue to slowly slide lower, pressured by the consistent pattern seen of late in the country as packers steadily buy live inventory lower. Open interest on Tuesday decreased by 3,028 (269,870). Spot December lost 6,915 (87,006) and February increased by 2,000 (74,329). Cash lean index 11/06: 68.66, off 0.29.
DTN projected slaughter for today is 465,000 head. Saturday's kill should total close to 185,000.
John A. Harrington can be reached at email@example.com
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