DTN Closing Livestock Comments

Meat Futures Close Lackluster Trading Session With Mixed Prices

(DTN file photo)

GENERAL COMMENTS:

Feedlot country was typically quiet for a Monday as packers focused exclusively on the collection of new showlists. Ready numbers appear to be mixed, larger in the South and smaller in the North. Generally speaking, the late-month offering appears to be a bit larger than last week. According to the closing report, the national hog base is $0.21 lower ($58.00-65.00, weighted average $62.67). Corn futures closed fractional mixed at the conclusion of a largely featureless trading session. The Dow closed 27 points lower with the Nasdaq off 2.

LIVE CATTLE

Business here open moderately higher, but sustained buying interest didn't last long. April closed 20 points higher but the rest of the live field lost 10 to 40. The overall action was technically insignificant. Given the impressive firm seen earlier this month, bulls may be just taking a rest, assessing the further potential of the cash market. Beef cut-outs: significantly higher, up $0.19 (select, $186.03) to $1.35 (choice, $191.77) with light to moderate demand and offerings (51 loads of choice cuts, 19 loads of select cuts, 13 loads of trimmings, 17 loads of coarse grinds).

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TUESDAY'S CASH CATTLE CALL

Steady to $2 higher. Tuesday should remain quite slow with bids and asking prices poorly defined. Unless something dramatic surfaced to define country psychology, firm asking prices will probably delay meaningful cash business until Thursday or Friday.

FEEDER CATTLE

Feeder futures settle 12 to 60 points lower, pressured by uninspiring deferred live contracts and a general lack of buying interest. On an estimated run of 12,000 hear (up from last week's weather restricted sale of 2,736 and above 9,217 last year), Oklahoma City sold feeder steers and heifers steady to $4 higher. CME cash feeder index: 01/18: $132.25, off $0.12.

LEAN HOGS

Ignoring the significance of the large premium of the cash index, nearby lean contracts continue to have difficulty finding support. Overall, lean issues settled 27 higher in the far deferred to 30 to 70 lower in the first two quarters of 2017. Carcass value closed moderately lower, checked by softening demand for fresh cuts and hams. Pork cut-out: $79.38, off $0.33. CME cash lean index for 01/17: $67.01, up $0.32 (DTN Projected lean index for 01/20: $67.03, up $0.03).

TUESDAY'S CASH HOG CALL

Steady. Hog buyers seem set to resume business in the morning with basically steady bids.

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

(AG)

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