Cattle: Cash cattle last week: $131.-132.00; On 56 boxed loads cut outs dn. $.18(c) to up $1.32(s) on light midday movement.
Comments: Futures imploded for ‘unobvious’ reasons its seems except maybe for the premium in the December vs. last week’s cash cattle trade, recent beef price losses and perhaps the C-O-T report I remarked on in morning comments. Showlists in total even between north and south plains.
Hogs: Interior hogs early unquoted west and east off $136; Pork cut outs rose $1.32 led by hams, loins and bellies.
Comments: Same pork cuts under pressure Friday recovered on midday wire, always curious. Nonetheless it tempered the futures break and maybe combined with the C-O-T report provided underlying support.
GRAINS & OILSEEDS:
Corn: New lows for the move as the fall-out from the ethanol decision still having a ripple effect. Fast math sees 1.0bln.gal. (avg.) of ethanol equates to 357mln.bu. of corn…..not huge but says export demand needs to be even better perhaps. Real contract lows at $4.01 as mentioned.
NOTE: Current margins are said to be favorable for ethanol ‘crushing'; and the mandate does not preclude plants from making more than the mandate…obviously if profitable. And corn prices are very attractive.
Soybeans: Firmness but hardly much of a correction considering the beating it took. Soyoil still pressured by the bio-fuel deal; wonder if export demand remains under the market as current prices had been conducive to sales.
Wheat: Holding well considering the corn but perhaps the screw is turning slowly as mentioned. For now though, we cannot jump the gun until the mechanics of the market turn more favorable. India’s return to the export market was somewhat ‘old news’ but still presents added demand competition.