DTN Closing Livestock Comments

GENERAL COMMENTS:

Light-to-moderate cash cattle trade surfaced in several states through the day. Live sales in the South were marked at $117-$118, steady to $1 lower. Some dressed biz was evident in parts of Nebraska at $188, about $1 lower than the weighted average. The Fed Cattle Exchange Auction report Wednesday listed a total of 5,711 head, with 4,826 actually sold. The state by state breakdown looks like this: KS 389 head at $117.00-$117.25, NE 3,892 head at $115.50-$117.00; TX 545 head, at $117.00-$117.25; CO no test; IA no test; other states no test. The weighted average was $116.77, up from last week's weighted average of $115.38. According to the closing report, the national hog base is $1.11 higher ($51.00-$55.50, weighted average $53.79). Corn futures advance by 4 cents or so, supported by better action in the bean market and some suggestions of excessive rain in Argentina. The stock market firmed after Fed minutes were released with the Dow closing within 100 points of the 20,000-threshold. The Dow closed 60 points in the green with the Nasdaq better by 42.

LIVE CATTLE

Live cattle futures finished with mixed price results, up 80 points to off 67. Nearby contracts were supported by bull-spreading and firm internet sales (as well as relatively stable country sales). Beef cut-outs: moderately higher, up $0.32 (choice, $203.65) to $0.73 (select, $194.30) with moderate demand and light offerings (78 loads of choice cuts, 27 loads of select cuts, 15 loads of trimmings, 25 loads of coarse grinds).

THURSDAY'S CASH CATTLE CALL

Steady with midweek. Cattle buyers probably have another day's work in order to cover short-term slaughter needs.

FEEDER CATTLE

Feeder futures struggled through the session with the first three contracts finishing with triple-digit losses. In general, prices settled 55 to 170 points in the red. Light bear-spreading and long liquidation seemed to be the main features. CME cash feeder index: 01/03: $133.67, up $0.52.

LEAN HOGS

Hog bulls successfully rekindled board buying interest, especially relative to spot Feb and April. The early year display of cash strength has really been helpful in that regard. Feb faces tough overhead resistance near 67 where the rally has run out of gas twice since mid-December. Carcass value got clobbered for the second straight day, especially pressured by a $7.36 drop in the ham primal. Pork cut-out: $79.31, off $1.23. CME cash lean index for 01/03: NA (DTN Projected lean index for 01/03: $57.58).

THURSDAY'S CASH HOG CALL

Steady to $1 higher. Look for hog buyers to resume procurement chores Thursday morning as they work to fund still profitable chain speed.

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

(AG)

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