DTN Closing Livestock Comments

GENERAL COMMENTS:

The cash cattle trade was not tested through the day Friday with sufficient business completed on Wednesday and Thursday. According to the closing report, the national hog base is $0.24 lower compared with the Prior Day settlement ($52-$62.74, weighted average $45). Corn futures experienced another positive run just before the weekend break. December closed roughly 4 cents higher, boosted by wet harvest conditions and fears of delayed corn-picking activity. Equities finally staged a recovery with the Dow closing 287 points higher and the Nasdaq bouncing some higher by 167.

LIVE CATTLE:

Cattle closed 30 to 80 lower, checked by defensive carcass value and nervousness regarding the ability to find adequate late-year product demand. Beef cut-outs closed mixed, up $0.20 (choice, $202.71) to off $0.21 (select, $192.20). Product demand was described as light to moderate with moderate to heavy offerings.

MONDAY'S CASH CATTLE CALL:

Steady-$2 lower. Cash activity on Monday will be limited as buyers and sellers limit efforts to the distribution on new showlists.

FEEDER CATTLE:

Feeders closed the week sharply lower, off 162 points to 212. Feeders lost buying appeal on firming grain prices. CME cash feeder index: 10/11: $157.40, off $0.89.

LEAN HOGS:

Lean hogs settled in a range from 57 points higher to 87 lower with nearbys generally holding up better than deferreds. Pork cutout: $78.61, off $0.59. CME cash lean index for 10/10: $69.28, off $0.06 (DTN Projected lean index for 10/11: $68.99, down $0.29).

MONDAY'S CASH HOG CALL:

Steady-$1 lower. Our guess is that the cash hog trade will open early next week steady to $1 lower.

John Harrington can be reached at harringtonsfotm@gmail.com

Follow him on Twitter @feelofthemarket

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