The cash cattle market at midday continues to drift with little definition. A handful of bids have been report at $105 live and the South and $170 dressed in the North. The Fed Cattle Exchange Auction today listed a total of 306 head, with 306 actually sold, with a weighted average of $106.00, According to the midday report, the national hog base is .92 lower compared with the Prior Day settlement ($70.00-78.00, weighted average $77.15). Corn futures are a penny plus higher near midday, supported by pre report short covering and ideas that the early summer market may be somewhat oversold. The stock market is higher in late morning business with the Dow up 182 points and the Nasdaq positive by 10.
Beef cut-outs are significantly lower at midday, off 0.33 (select, $201.24) to $1.48 (choice, $215.35) with moderate box movement (36 loads of choice cuts, 13 loads of select cuts, 11 loads of trimmings, 12 loads of coarse grinds).
Feeders are getting hit hard moving toward the top of the noon hour. Triple-digit losses blanket the entire market with prices currently off 100 to 117. Fears of further drought problems stress pasture numbers are a concern.
For the most part, lean hog issues are modestly lower in slow trading as we approach midday. Only spot July (currently up 67) is attracting buying interest thanks to the premium status of the cash index and expectation of relatively strong fundamentals over the next 30 days or so. Carcass value at midday is essentially steady with processing items higher but picnics and loin lower. Pork cut-out: $87.38, off 0.03. CME cash lean index for 06/25: 85.63, off 0.57 (DTN Projected lean index for 06/26: 84.82, off 0.81).
John A. Harrington can be reached at email@example.com
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