Early-week feedlot activity was typically limited to the distribution of new showlists. The offering appears to be mixed -- larger in Texas and Colorado but smaller in Kansas and Nebraska. Overall, ready steer and heifer numbers seemed to be somewhat smaller than last week. According to the closing report, the national hog base is .78 lower ($48.00-52.75, weighted average $52.13). Corn futures closed generally 3 cents lower, pressured by a lack of buying interest and the pending state of harvest. Equities closed higher with the DJIA setting another record (i.e., 22,331, up 63 points). The Nasdaq finished 6 higher.
Although live contracts opened Monday morning on the right foot, forward moving limbs had a tough time catching stride. In fact, when everything was said and done, settlements here were no better than mixed (i.e., up 65 to off 25). Apparently, news of greater packer spending late Friday played only so far. Note that nearbys Oct and Dec closed more than 100 points below early session highs, once again reinforcing overhead chart resistance. Beef cut-outs: significantly higher, up $1.20 (choice, $192.62) to $1.85 (select, $187.70) with moderate demand and offerings (58 loads of choice cuts, 19 loads of select cuts, 13 loads of trimmings, 25 loads of ground beef).
TUESDAY'S CASH CATTLE CALL:
Steady. Look for the cash trade to remain poorly defined with specific bids and asking prices not likely to surface until Wednesday or later.
Feeder futures closed significantly higher, up 57 to 145. November landed its highest close since June 5. New multi-month highs were sponsored by commercial buying, technical bullishness, and lower corn prices. On an estimated run of 7,000 head (down from 8,775 last week but up from 5,969 last year), Oklahoma City sold replacement steers and heifers mostly steady. CME cash feeder index: 09/15: 150.09, up .36.
Bear-spreading interest and nervousness regarding early fall fundamentals caused lean futures to close on a mixed basis with Oct-Feb losing ground to deferreds (i.e., up 50 to off 97). With the cash index still dropping like a stone, it may be difficult for spot October to dig in around psychological support at 60. Carcass value closed moderately higher, supported by better demand for ribs and bellies. Pork cut-out: 77.75, off 1.44. CME cash lean index for 09/14: 64.07, off 1.08 (DTN Projected lean index for 09/15: 62.82, off 1.25).
TUESDAY'S CASH HOG CALL:
$1 lower. The cash hog trade is expected to see $1 lower bids in the morning. Finishing floors continue to look plenty packed.
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