DTN Closing Livestock Comments

Meat Futures Engage in Midweek Retreat

(DTN file photo)

GENERAL COMMENTS:

Northern bids were little more than token at $173 to $174 through the day. Some showlists were priced around $114 live in the South and $180 in the North. According to the closing report, the national hog base is $.71 lower compared with the Prior Day settlement ($59.00 to $64.00, weighted average $62.58). Corn was pressured by outside markets and equities. The stock market imploded Wednesday thanks to fear of rising interest rates. The Dow crashed by 831 points and the Nasdaq tanked by 315.

LIVE CATTLE:

Live futures settled 32 to 127 lower, pressured by long liquidation and some CME delivered interest. Nearbys seem to attract more selling interest than deferreds. Beef cut-outs closed lower, off $.74 ($202.11, choice) to $.95 (select, $191.77) with light to demand and light to moderate offerings (63 loads of choice cuts, 32 loads of select cuts, zero loads of trimmings, 36 loads of ground beef).

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THURSDAY'S CASH CATTLE CALL:

Steady. Look for further buying action Thursday, such that significant trade volume could easily be delayed until sometime Friday.

FEEDER CATTLE:

Feeder futures were swamped with triple-digit losses by the close, off 105 to 162. Deferred live cattle target are fading, stripping feeder contracts of commercial support. CME cash feeder index: 10/08: $158.38, off $.07.

LEAN HOGS:

Lean futures closed 20 to 70 lower, pressured by board discounts and fears of struggling demand through the fourth quarter. The wholesale pork value eased moderately higher, supported by bellies, ribs, picnics and hams ribs. Pork cut-out: $79.20, up $.14. CME cash lean index for 10/08: $69.33, off $.03 (DTN Projected lean index for 10/09: 69.34, up .01).

THURSDAY'S CASH HOG CALL:

Steady to $1 lower. The cash hog trade on Thursday should be steady to $1 lower.

John Harrington can be reached at harringtonsfotm@gmail.com

Follow him on Twitter @feelofthemarket

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