DTN Closing Livestock Comments

GENERAL COMMENTS

Light-to-moderate cattle trading surfaced in Kansas and Texas at $110 on a live basis, $5 lower than last week. Light biz was evident in the North with dressed deals ranging from $173-$175 (mostly $175), $8-$10 lower than last week's weighted average basis Nebraska. According to the closing report, the national hog base is $0.93 lower ($70-$77, weighted average $75.46). December corn slipped another 2 cents lower in light volume, posting its lowest settle since July 2016. The stock market closed 274 points with the Nasdaq down by 123.

LIVE CATTLE

Spooked by big losses in the cash cattle trade and faltering beef cut-out values, live futures continued to implode Thursday with nearbys setting new four-month lows. When the selling dust cleared, most contracts settled lower by 107 to 235 points. Board bears are still confidently willing to lead the late-summer cash market lower. Beef cut-outs: significantly lower, off $0.84 (select, $194.20) to $1.88 (choice, $195.63) with light-to-moderate demand and heavy offerings (111 loads of choice cuts, 35 loads of select cuts, 4 loads of trimmings, 17 loads of ground beef).

FRIDAY'S CASH CATTLE CALL:

Steady/weak with Wednesday's decline. Clean-up business could surface here and there, but there's a chance that trading is essentially done for the week.

FEEDER CATTLE

Feeder issues closed sharply lower, off 137 to 240. The trade was stressed by further long liquidation and rapidly declining feedlot profits. Soon-to-be-spot September closed at its lowest level seen since April 13. CME cash feeder index: 08/16: $145.44, up $0.95.

LEAN HOGS

Lean hog contracts fell significantly lower Thursday, pressured by the persistent erosion in cash sales and wholesale carcass value. Prices settled 65 to 187 in the red. October and December closed back below 100-day moving averages for the first time since Aug. 7. Carcass value closed moderately higher as better demand for rib, ham and loin cuts overshadowed reduced spending on butts, picnics and bellies. Pork cut-out: $91.97, up $0.42. CME cash lean index for 08/15: $84.03, off $0.35 (DTN Projected lean index for 08/16: $83.70, off $0.33).

FRIDAY'S CASH HOG CALL:

$1 lower. Expect late-week cash bids to remain on the defensive. Although packers still have big appetites, they have an abundance of market-ready hogs to choose from.

For more from John, see http://www.feelofthemarket.com/…

(AG)

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