The cash cattle trade at midday with just a few bids noted in parts of the North at $192. Our guess is that the lion share of country business is done for the week. According to the midday report, the national hog base is .38 lower ($57.50-62.25, weighted average $60.10). The corn trade is sagging by a nickel plus near the top of the noon hour, pressured by the USDA's decision to increase its estimate of 2017-2018 ending stocks. The stock is lower in the face of news that the Senate might delay the corporate tax cut until 2018.
The Dow is currently off 212 points with the Nasdaq down by 85.
Live issues are mixed as we turn into the session's final hour. Currently, prices range from 30 points higher to 47 lower. The premium status of feedlot sales may be encouraging sellers to put on the brakes. Beef cut-outs are mixed at midday, up 0.40 (choice, $213.53) to off 0.30 (select, $199.10) with light box movement (24 loads of choice cuts, 13 loads of select cuts, 17 loads of trimmings, 8 loads of coarse grinds).
Feeders are modestly higher at midday with gains ranging from 5 to 52 points. At least, the bearish energy seems to have dissipated. The premium status of the cash index may be helping in that regard.
For the most part, lean hogs are moderately lower at midday, off 7 to 75. Would be buyers are understandably nervous about supportive fundamentals through the balance of the month of November. Carcass value is quoted modestly higher at midday as better demand for loins, picnics, and bellies overshadowed weakness in ribs, hams, and butts. Pork cut-out: $80.79, up 0.12. CME cash lean index for 11/07: 68.35, off 0.31 (DTN Projected lean index for 11/08: NA).
John A. Harrington can be reached at email@example.com
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