DTN Closing Livestock Comments
Lack of Thursday Buying Interest Leaves Meat Futures Struggling
GENERAL COMMENTS: Besides a token number of dressed sales in Iowa at $183, the cash cattle market remained at a standstill. For example, Southern feedlot managers easily rejected bids of $112 to $114, holding firm for asking prices of $120 or better. According to the closing report, the national hog base is $.01 higher compared with the prior day settlement ($44.00 to $48.52, weighted average $47.52). The corn trade closed a penny-plus lower, but well above lows of the day, likely tied to the arrest of Huawei CFO Meng Wanzhou, which appeared to cast further doubt that China will follow through with the trade truce promised in the wake of the G-20 summit. The stock market crashed early but rebounded to close no worse than mixed: the Dow settled off 79 points and the Nasdaq finished better by 29.
LIVE CATTLE: Apparently unconvinced that feedlot cash can maintain its premium status through the end of the year, live futures settled moderately lower with closing prices off $0.30 to $0.65. The pull-back seem to long liquidation and the uncertain late week spending of cattle buyers. Beef cut-outs closed mixed with the choice off $0.59 ($212.67) and select up $1.36 ($198.22). Box demand was called light to moderate demand and light offering.
P[L1] D[0x0] M[300x250] OOP[F] ADUNIT[] T[]
FRIDAY'S CASH CATTLE CALL: Steady to $2 higher. We're headed toward another Friday showdown. Don't look for much cash news until late tomorrow afternoon.
FEEDER CATTLE: Feeder issues copied the defensive map employed in the live market with prices closing generally $0.35 to $1.47 lower. Triple-digit losses blanketed January through August of 2019. CME cash feeder Index for 12/05: $145.53 off $0.85.
LEAN HOGS: Lean hog contracts closed substantially lower thanks to plentiful live offerings and impressive packer margins and leverage. The board's retreat was extended by $0.32 to $1.32. Carcass value closed moderate higher as processing items offset eroding fresh cuts, picnics, and ribs. The cut-out totaled $72.12, up $0.42. (DTN Projected lean index for CME cash lean index for 12/05: $56.19, off $0.21) CME cash lean index for 12/04: $56.40, up $.02.
FRIDAY'S CASH HOG CALL: Steady. The late week cash hog trade is expected to open with near steady bids.
John A. Harrington can be reached at harringtonsfotm@gmail.com
(CZ)
Copyright 2018 DTN/The Progressive Farmer. All rights reserved.