Live and feeder futures are sharply higher, powered by stronger carcass value, technical buying, and cash premiums. For the most part, lean hog issues are solidly higher in the last hour of business, helped by evidence of cash strength and spillover support from the cattle complex.
The cash cattle trade is a nonstarter through the noon hour with neither bids nor asking prices well defined. According to the midday report, the national hog base is $1.27 higher compared with the Prior Day settlement ($52.00-60.00, weighted average $57.52).
Corn futures are about a nickel lower near middle, checked by long liquidation and profit taking. Equities are mixed at midday with the Dow up 24 points and the Nasdaq off 1.
Nearby futures are surging higher in late morning business with spot June energized by bull spreading, red-hot box demand, and cash premiums. Beef cut-outs are sharply higher at midday, up $2.50 (choice, $228.77) to $3.68 (select, $213.13) with light box movement (25 loads of choice cuts, 11 loads of select cuts, 6 loads of trimmings, 15 loads of coarse grinds).
Feeders are roaring back after Monday’s crash. Triple-digit gains are tied to short covering, commercial buying, and a pullback in the corn trade.
Lean futures are mixed in late trading with summer contracts gaining ground on deferreds. Reports of greater packer spending in the country seem to be getting seasonal bulls back on track. Carcass value at midday is steady with higher loins and ribs offsetting butt, picnic, and ham weakness. Pork cut-out: $74.89, up 0.43. CME cash lean index for 04/28: 59.88, up 0.24 (DTN Projected lean index for 05/01: 60.29, up 0.41).