DTN Closing Livestock Comments
Cattle Futures Launch Holiday-Shorted Week With Solid Gains
Cattle feeding country was generally quiet as buyers focused on the assessment of new showlists. The mid-month offering appears to be generally smaller than last week with only Colorado showing a few more ready steers and heifers. Some cattle were priced around $122 in the South and $192-$195 in the North. According to the closing report, the national hog base is $0.44 higher ($58.00-$63.75, weighted average $62.40). The corn market surged 7 cents plus higher with nearby contracts notching 11-week highs. Corn was supported by fears of flooding in Argentina and a softer dollar. The Dow closed 59 points lower with the Nasdaq off 35.
LIVE CATTLE
Live issues got off to a positive start for the week, advancing by 37 to 107 points. Particularly goosed by bull-spreading and greater packer spending late Friday, spot Feb stamped its highest close since March 21. Beef cut-outs: mixed, up $0.23 (choice, $191.62) to off $0.23 (select, $187.23) with light-to-moderate demand and offerings (63 loads of choice cuts, 27 loads of select cuts, 8 loads of trimmings, 21 loads of coarse grinds).
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WEDNESDAY'S CASH CATTLE CALL
Steady to $2 higher. Though the surfacing of a few token bids is possible here and there, significant trade volume will probably be postponed until Thursday or Friday.
FEEDER CATTLE
Feeder issues closed moderately higher, up 10 to 75 points. Nearbys were supported by spillover buying from the live market and the stubborn premium of the cash index. CME cash feeder index: 01/16: $132.56, up $0.57.
LEAN HOGS
For the most part, lean hog futures settled modestly higher (i.e., up 10 to 35) with only the far deferred finishing some lower. For the most part, the early week action proved to be technically insignificant. In other words, the long-term trend remains higher with the short-term more neutral. Spot Feb continues to be trapped in a narrow range, spinning between $62.50 and $66. Carcass value closed moderately higher, supported by stronger demand for processing items. Pork cut-out: $80.53, up $0.53. CME cash lean index for 01/13: $64.10, up $1.18 (DTN Projected lean index for 01/16: $64.84, up $0.74).
WEDNESDAY'S CASH HOG CALL
Steady to $1 higher. Look for hog buyers to resume work in the morning with steady/firm bids.
John A. Harrington can be reached at john.harrington@dtn.com
(AG)
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