DTN Closing Livestock Comments

Closing Comments

The cash cattle trade remained dead quiet through the day with just a small handful of bids evident here and there (i.e., $1l6 live, $185 dressed). Some asking prices were voiced around $122 in the South and $190-$192 in the North. According to the closing report, the national hog base $0.08 higher ($68.00-$74.75, weighted average $73.19). Corn futures pulled back by 3-5 cents as traders took profits in the wake of the midweek surge. Equities closed mixed with the Dow up 7 points and the Nasdaq off 4.

LIVE CATTLE:

At the conclusion of a rather lackluster session, live issues settled mostly 7 to 25 lower with only a few months in 2018 closing modestly higher. The cautious action was no doubt related to the uncertainty of late-week cash potential. While the board's preexisting discounts to cash seemed to partially put the brakes on further selling, no one felt confident enough to lift prices toward the most recent country sales. Beef cut-outs: significantly higher, up $0.88 (choice, $189.22) to $1.04 (select, $188.19) with moderate demand and moderate to heavy offerings (94 loads of choice cuts, 18 loads of select cuts, 2 loads of trimmings, 26 loads of coarse grinds).

FRIDAY'S CASH CATTLE CALL:

Steady/firm. It will be "now or never" time in feedlot country on Friday with both sides running out of room to negotiate and posture. Look for light-to-moderate business to surface sometime between late morning and midafternoon.

FEEDER CATTLE:

Feeders settled moderately lower (i.e., off 27 to 47), pretty much surrendering the price territory won on Wednesday. With deferred live contracts significantly discounted to the feedlot sales of late winter, the recruitment of commercial buyers is just plain tough duty. CME cash feeder index: 02/15: $128.02, off $0.41.

LEAN HOGS:

Perhaps somehow troubled by production uncertainties caused by the "Day Without Immigrants," lean futures closed 15 to 95 points lower. Yet the prospect of momentary chain speed disruption hardly seemed all that bearish. Note that spot April closed more than $6 below the cash index. Carcass value faltered by more a buck, especially pressured by processing items. Pork cut-out: $84.42, off $1.06. CME cash lean index for 02/14: $75.31, up $0.69 (DTN Projected lean index for 02/15: $75.98, up $0.67).

FRIDAY'S CASH HOG CALL:

Steady to $1 higher. If packers plan to kill 210,000 on Saturday, receipts on Thursday seemed too small. Look for cash to have a firm late-week undertone.

John Harrington can be reached at harringtonsfotm@gmail.com

Follow John Harrington on Twitter @feelofthemarket

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