DTN Midday Livestock Comments

GENERAL COMMENTS:

Feedlot country is generally as quiet as a church library after hours. We have seen a few bids in Nebraska at $195 dressed. Given last week's light trade volume, pricing ideas should start to stir more aggressively by Wednesday or Thursday. According to the midday report, the national hog base is $2 lower compared with the Prior Day settlement ($47.00-$50.00, weighted average $49.33). The corn trade seems to be fading from early highs at midday, though nearby issues remain fractionally higher. Spillover support from the bean market has lost its early punch. U.S. stocks are generally stronger, at least temporarily ignoring discouraging manufacturing data in November. Near midday, the Dow is 113 points higher with the Nasdaq better by 30.

LIVE CATTLE:

After opening only moderately lower, live issues have steadily deteriorated through the morning. Triple-digit losses now dominate the market thanks to spec and commercial selling. The board appears to be running out of patience for the late year cash market to improve. Beef cut-outs are lower at midday, off 0.09 (choice, $205.56) to $1.08 (select, $193.78) with light box movement (32 loads of choice cuts, 10 loads of select cuts, 11 loads of trimmings, 12 loads of coarse grinds).

FEEDER CATTLE:

For every back step taken in the live market this morning, the feeder trade has reversed nearly three. Contracts are generally 175 to 362 lower at this time, clobbered by commercial selling, technical bearishness, and a general vacuum of buying interest.

LEAN HOGS:

Ignoring the bearish problems ripping through the cattle complex, lean issues are sharply higher near midday. Most contracts are now in the black by 100 to 217 points. Bullish focus here is being helped by evidence supporting a seasonal upturn, both in terms of country receipts and improving pork demand. Carcass value at midday is modestly higher with higher belly, rib, and picnic quotes overshadowing lower sales of fresh cuts and hams. Pork cut-out: $71.03, off 0.69. CME cash lean 11/27: 55.62, off 0.12 (DTN Projected lean index for 11/30: 55.54, off 0.08).

(BAS)

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