DTN Closing Livestock Comments

GENERAL COMMENTS:

Despite essentially boycotting the cash market before Thanksgiving, cattle buyers have been very slow in entertaining higher feedlot asking prices in the eleventh hour. Indeed, the country trade remains to be determined as of this writing. Best bids are no better than $195 to $196 in the North (with asking prices around $200-plus) and $124 in the South (with asking prices around $131-plus). According to the closing report, the Iowa hog base is .32 lower compared with the Prior Day settlement ($47.00-$52.25, weighted average $51.84). Corn futures closed 4-5 cents higher in thin volume. Besides a lack of buying interest, the late-week grain trade continued to be troubled by the strong dollar. Equities ended narrowly mixed in light volume. Market talk was limited to declines in Disney and oil, as well as Black Friday shopping results. The Dow closed 14 points lower with the Nasdaq up 11.

LIVE CATTLE:

Live issues settled early, moderately higher, up 5 to 87. Nearby contracts attracted more of the buying interest despite the fact that signs of greater packer spending were strictly MIA through the morning. Indeed, spot December closed as high as 131.82, essentially $7 above last week's 5-area steer average. Such a weak basis surely can't last for long. Beef cut-outs: significantly higher, up .31 (choice, $204.40) to $1.74 (select, $195.50) with light to moderate to fairly good demand and light offerings (45 loads of choice cuts, 15 loads of select cuts, 4 lds of trimmings, 11 loads of coarse grinds).

MONDAY'S CASH CATTLE CALL:

Steady to $2 higher. If packers don't own significantly more livestock by nightfall today, they will start next week with serious slaughter needs.

FEEDER CATTLE:

For the most part, feeder futures finished moderately higher, generally 10 to 105 higher. Light bull-spreading and the premium status of the cash index caused spot January to advance on all deferreds. CME cash feeder index: 11/26: 172.16, unch.

LEAN HOGS:

Pressured by late-week profit-taking and reports of softer product demand, lean contracts closed 7 to 142 lower. Yet the triple-digit losses may have been skewed by the light volume, especially given the fact that better trade issues (e.g., spot December and nearby Feb) settled no worse than 7 to 40 in the red. Carcass value managed a moderate late-week recovery, supported by better demand for fresh cuts and hams. Pork cut-out: $72.40, up .68. CME cash lean 11/24: 55.64, up .14 (DTN Projected lean index for 11/25: 55.74, up .10).

MONDAY'S CASH HOG CALL:

Steady. Expect hog buyers to resume work early next week with basically steady bids.

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

(AG)

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