DTN Closing Livestock Comments
Meat Futures Settle Session With Narrowly Mixed Prices
The feedlot trade was extremely slow Thursday with just a few scattered sales reported in parts of the North (i.e., $188 dressed, steady with Wednesday, steady to $1 lower than last week basis Nebraska). According to the closing report, the national hog base is $0.96 higher ($51.00-$57.50, weighted average $54.80). The corn market ended 1-2 cents higher, boosted by record ethanol production and a softer dollar. Equities closed unevenly, up 42 points on the Dow and 10 higher (a record-high close) on the Nasdaq.
LIVE CATTLE
Live issues closed with mixed prices, up 17 to off 60. Nearby weakness suggested bull spreaders taking profits. Spot Feb rallied in the early going but once again attracted selling interest overhead resistance near 117. Beef cut-outs: sharply lower, off .91 (select, $193.39) to $2.10 (choice, $201.55) with light to moderate demand and moderate offerings (71 loads of choice cuts, 30 loads of select cuts, 6 loads of trimmings, 34 loads of coarse grinds).
P[L1] D[0x0] M[300x250] OOP[F] ADUNIT[] T[]
FRIDAY'S CASH CATTLE CALL
Steady with midweek. WTD trade volume suggests that some packers may still have a late-week appetite. Yet business could be done for the week in the South.
FEEDER CATTLE
For the most part, feeder issues settled narrowly mixed, up 10 to off 25. For the moment, spot January seems more impressed (discouraged) by the early summer discounts of live cattle premium than the substantial premium of the cash index. CME cash feeder index: 01/04: $133.07, off $0.60.
LEAN HOGS
Most lean hog contracts closed moderately higher (i.e., up 17 to 35), supported by signs of early year cash strength. Though still checked by overhead resistance, defenders of the Feb premium still believe first-quarter cash is more likely to firm than not. The carcass value managed a modest bounce Thursday, supported by better demand for hams and loins. Pork cut-out: $79.57, up $0.26. CME cash lean index for 01/03: $57.58, up $0.11 (DTN Projected lean index for 01/04: $57.51, up $0.03).
FRIDAY'S CASH HOG CALL
Steady to $1 higher. Hog buyers should still be on the make for live inventory in the morning. The estimate of the Saturday kill has been raised to 366,000 head.
John A. Harrington can be reached at john.harrington@dtn.com
(AG)
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