Feedlot country is very quiet this morning with business probably done for the week. We could see a few clean-up deals with prices near steady with those seen on Wedneday and Thursday (i.e., $106 live; $169-170 dressed). Hog buyers are at work in the country with bids steady to $1 lower. Corn futures are 2-3 cents higher in the early rounds linked to pre-report short covering. The stock market is off to a robust start with the Dow up 223 points and the Nasdaq better by 49.
Live futures are tradng 10-30 so far this morning, checked by slow long liquidation and late-week profit taking. The cash market's new discount to the board and defensive action in the boxed beef trade may make it more difficult to put together a sustained buying effort. Open interest on Thursday decreased by 324 (325,434). Spot June liquidated by 789 (1,105) and August dropped 2,330 (136,565). DTN projected slaughter for today is 119.000 head.
Feeder contracts are currently mixed with prices ranging from up 80 to off 22. Deferred are outperforming their nearby counterparts. Feeder traders will obviously be keenly interested in the acreage and stocks reports to be unveiled later this morning. Open interest on Thursday decreased by 157 (46,585). CME cash feeder index for 06/27: 142.55, up 0.77
Reacting to record market hog numbers and the historic size of the spring pig crop, deferred lean issues are sharply lower in the early going with August through December off as much as 300 points. Spot July is holding up the best against the late-week storm, supported somewhat by the premium of the cash index. Open interest on Thursday increased by 206 (229,393). Spot July liquidated by 1,283 (19,222) and August lost 234 (76,193). Cash lean index 06/27: 84.52 off 0.50. DTN projected slaughter for today is 430,000 head. The Saturday kill is estimated by private sources at this time to total 21,000.
John A. Harrington can be reached at email@example.com
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