The market is searching for a bottom, but pressure remains. Traders may be content to go into the weekend holding short positions feeling there is limited risk. Packers had the upper hand this week with sellers doing business at lower prices. Lower cut-outs would not bring bids higher. June is the only contract in positive territory today with traders unwilling to press the downside before the weekend. Later contracts are at the lowest price level since August. Only cleanup business is being done today as buyers have put away the checkbook again for a few days. Boxed beef cut-outs are lower at midday. Choice cuts are $0.80 lower with select cuts $1.59 lower. Movement has been light with 54 loads reported (20 loads of choice cuts, 19 loads of select cuts, 4 loads of trimmings, and 11 loads of ground beef.
The feeder complex is again leading the charge lower with moderate weakness earlier in the morning succumbing to more selling pressure posting triple-digit losses later in the morning. There is no bottom in sight with traders confident to remain short over the weekend.
The market is trying to figure out what to do prior to the weekend. Some spread trading is taking place between closer months and differed months. Futures have relieved the oversold status moving technical more neutral. Cash prices are lower on the National Daily Direct morning cash report. The weighted average price is $0.69 lower at $78.31 with a range of $75.00 - $78.99 on 6,059 head sold. The National Pork Plant report posted 149 loads selling. There were 135 loads of pork cuts and 14 loads of trim. Pork carcass values declined $0.10 at $83.82. Lean hog index for 5/1 is $83.23, down $0.10 with a projected two-day index of $82.02, down $0.21.
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