DTN Closing Livestock Comments

GENERAL COMMENTS:

Cash cattle market was only thinly tested today with scattered sales restricted to parts of the North. On a selective basis, Northern regional buyers paid up to $191, $1 higher than last week's weighted average basis Nebraska. According to the closing report, the national hog base is .92 higher ($66.00 to $73.00, weighted average $71.10). Corn futures closed a penny-plus lower with the market uninspired by a rash of new numbers released by the USDA. The stock market closed higher, with the Dow notching a new record at 20,172 points, up 118 points. The Nasdaq advanced by 32 points.

LIVE CATTLE

Live contracts finished 2 to 87 cents higher with spot February contracts catching most of the buying interest. The board seems trapped in a trading range, albeit well-below recent cash levels. Beef cut-outs were moderately lower, off .67 (select, $185.82) to .72 (choice, $188.71) with light to moderate demand and moderate offerings (73 loads of choice cuts, 26 loads of select cuts, 5 loads of trimmings, 23 loads of coarse grinds).

FRIDAY'S CASH CATTLE CALL

Steady with Wednesday. One final round of cash business is possibly in the North just before the weekend. We suspect activity in the South is pretty much done for the week. Asking prices on the balance of show lists are around $122 in the South and $192-plus in the North.

FEEDER CATTLE

Feeder issues surged higher today, climbing 107 to 137 for the most part. Buying seemed to be tied to short covering and the premium status of the cash index. CME cash feeder index: 02/08: 128.11, up .83.

LEAN HOGS

Spot February contract closed 85 points higher, sparked by impressive cash momentum and short covering. Yet most of the complex took a breather, closing off mostly 40 to 107. The carcass value closed moderately lower, pressured by weaker demand for fresh cuts, picnics, and hams. Pork cut-out: $84.73, off .50. CME cash lean index for 02/07: 72.19, up .74 (DTN Projected lean index for 02/08: 72.80, up .61).

FRIDAY'S CASH HOG CALL

Steady to $1 higher. Look for late-week bids on open on a steady/firm basis, as most packers expect market numbers to remain relatively snug for another 30 to 60 days.

John Harrington can be reached at harringtonsfotm@gmail.com

Follow John Harrington on Twitter @feelofthemarket

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