DTN Closing Livestock Comments

GENERAL COMMENTS:

Feedlot country was generally slow through the day with just a few starter bids noted in parts of the South. However, internet sales once again developed on a firm basis. The Fed Cattle Exchange Auction report Wednesday listed a total of 5,462 head, with 2,729 actually sold. The state-by-state breakdown looks like this: KS 586 head at $121.50-$124.00; NE 1,299 head at $120.00-$122.00; TX 638 head, at $123.00-$124.00; CO no test; IA no test; other states (SD/OK) 206 head at $119.00-$123.00. The weighted average was $121.98, up from last week's weighted average of $120.52. The national hog base closed up $0.51 compared with the prior day settlement ($59.00-$65.00, weighted average $63.58). Corn futures closed generally 0.03 cents higher, supported by short-covering in light trade volume. The stock market closed significantly higher with the Dow setting a new all-time high over 20,000. The Dow closed 150 points higher for the day with the NASDAQ up 55.

LIVE CATTLE

Futures closed mixed, up 30 to off 17. Business was generally choppy through the session with contracts swinging between positive and negative territory multiple times. Traders continue to cautiously position ahead of late week cash news and the Jan. 1 on-feed report. Beef cut-outs: weak on choice and higher on select (choice, $191.25 off $0.49, select $189.16 up $0.99) on light to moderate demand and offerings (66 loads of choice cuts, 16 loads of select cuts, 07 loads of trimmings, 25 loads of coarse grinds).

THURSDAY'S CASH CATTLE CALL

Steady to $2.00 higher. Packer inquiry should begin to improve on Thursday, edging closer to higher asking prices of $125.00 in the South and $200.00 in the North. It is possible that significant trade volume may not develop until Friday.

FEEDER CATTLE

Futures closed modestly lower off 5-47. Action was generally lackluster through the day with traders hoping to glean better leadership from the live market. CME cash feeder index: 01/24: $133.32, up $0.04.

LEAN HOGS

Futures closed for the most part sharply higher, up 252 to off 42. Triple-digit gains dominated February through July, supported by bull-spreading, improving pork demand and cash premiums. Note that spot February has finally caught up with the cash lean index. Pork cut-out: $82.40 (FOB Plant) up $0.96. CME cash lean 01/23: $67.23, up $0.18 (DTN Projected lean index for 01/24: $67.76, up $0.53).

THURSDAY'S CASH HOG CALL

Steady to $1.00 higher. Hog buyers are expected to resume procurement activity on Thursday with steady/firm bids.

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

(AG)

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