DTN Closing Livestock Comments

GENERAL COMMENTS:

Feedlot country remained at a near standstill with both bids and asking prices poorly defined. Several scattered dressed sales in Nebraska were reported at $195, generally steady with last week. A few showlists in parts of the South were priced around $132-plus. According to the closing report, the Iowa hog base is 0.04 lower compared with the Prior Day settlement ($50.00-$52.50, weighted average $51.88). Corn futures settled generally 3 cents lower, trimmed by light volume and an absence of would-be buyers more than anything else. The stock market closed mostly higher as gains in oil prices and energy stocks helped offset an earlier decline following news of a downed Russian jet near the Syrian border. The Dow closed 19 points higher with the Nasdaq about steady.

LIVE CATTLE:

Monday's new head of steam quickly dissipated in this market as traders took back most of the forward progress. Live prices settled 65 to 192 points lower with deferred holding up marginally better than nearbys. While traders seemed eager to anticipate stronger post-Thanksgiving beef buyers, such bullish vision quickly faded Tuesday. Beef cut-outs: significantly higher, up $1.02 (choice, $203.81) to $1.19 (select, $192.24) with moderate to fairly good demand and moderate to heavy offerings (100 loads of choice cuts, 40 loads of select cuts, 25 loads of trimmings, 47 loads of coarse grinds).

WEDNESDAY'S CASH CATTLE CALL:

Steady to $2 higher. Both sides would no doubt like to trade some cattle at midweek, clearing the deck for serious feasting on Thursday and football through the long weekend. Yet, it remains to be seen if packers and producers can come to pre-holiday terms.

FEEDER CATTLE:

Feeders closed moderately lower with most contracts off 37 to 72. Futures continue to consolidate between 160 and 165 with neither bulls nor bears capable of breaking through the extremes. CME cash feeder index: 11/23: $171.83, up $0.32.

LEAN HOGS:

Lean hog futures traded moderately higher for most of the session. But late profit-taking and long-liquidation caused the majority of issues to finish 7 to 77 lower. Only a few contracts in the far deferred managed to close slightly higher. Trade volume was very light, no doubt related to the close proximity of the holiday. Carcass value rallied significantly, supported by better demand for all primals except the belly. Pork cut-out: $73.62, up $1.32. CME cash lean index for 11/20: $55.37, off $0.15 (DTN Projected lean index for 11/23: $55.50, up $0.13).

WEDNESDAY'S CASH HOG CALL:

Steady to $1 higher. Look for the cash hog trade in the morning to be supported by steady/firm bids, though business will no doubt be completed early.

John A. Harrington can be reached at john.harrington@dtn.com

(AG)

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