DTN Closing Livestock Comments

Meat Futures Swamped With Triple-Digit Losses

(DTN file photo)

GENERAL COMMENTS:

Light to moderate trade volume surfaced in several areas of cattle-feeding country. Live sales in the South were marked at $122, steady with last Friday. Moderate dressed business was reported in parts of Nebraska and Iowa at $193-$194 (mostly $194), $1-$2 lower than last week. According to the closing report, the national hog base is $0.09 lower ($59.00-$65.50, weighted average $63.50). The corn market slipped 2-3 cents lower Thursday, pressured by favorable South American weather and a general lack of buying interest. The stock market closed mixed with the Dow advancing by 32 points and the Nasdaq down by 1.

LIVE CATTLE

Early losses did not seem significant, but somehow selling interest just kept growing through the day. At the close, contracts ranged from 82 to 117 in the red. Spot February and April closed below moving average lows for the first time since Jan. 6. With cash business holding essentially steady, the basis has once again assumed historical strength. Beef cut-outs: significantly higher, up $0.58 (select, $189.74) to $1.75 (choice, $193.00) with light to moderate demand and offerings (55 loads of choice cuts, 25 loads of select cuts, 17 loads of trimmings, 21 loads of coarse grinds).

P[L1] D[0x0] M[300x250] OOP[F] ADUNIT[] T[]

FRIDAY'S CASH CATTLE CALL

Steady with Thursday. Look for light to moderate cash business to surface Friday with the biggest late-week movement likely in the North.

FEEDER CATTLE

Selling turned even more aggressive here with most issues losing 155 to 275. With live futures apparently eager to lead feed cash lower at some point, commercial buying interest in feeders really dried up. Spot January expired at $131.82, off 55. New spot March did attract so new buying interest near its 40-day moving average. CME cash feeder index: 01/25: $132.62, off $0.70.

LEAN HOGS

Easy come, easy go. After Wednesday's sharply higher close, we thought that the board was finally ready to turn the page. But Thursday's trade quickly nullified that progress, closing issues down by 110 to 292. April seemed to somewhat catch above its 40-day moving average. The carcass value closed moderately higher with aggressive demand for bellies overshadowing weakness in the picnic, rib, ham and loin primals. Pork cut-out: $82.81, up $0.41. CME cash lean index for 01/24: $67.73, up $0.53 (DTN Projected lean index for 01/25: $68.11, up $0.35).

FRIDAY'S CASH HOG CALL

Steady. Cash hog traders are likely to wrap-up procurement chores for the week with basically steady bids.

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

(AG)

P[L2] D[728x90] M[320x50] OOP[F] ADUNIT[] T[]
P[R1] D[300x250] M[300x250] OOP[F] ADUNIT[] T[]
P[R2] D[300x250] M[320x50] OOP[F] ADUNIT[] T[]
DIM[1x3] LBL[] SEL[] IDX[] TMPL[standalone] T[]
P[R3] D[300x250] M[0x0] OOP[F] ADUNIT[] T[]