Feedlot country remained generally quiet with just a few preliminary bids noted here and there (i.e., $104 in the South; $168-$169 in the North). Asking prices were few and far between as the defensive board probably discouraged producers from price ready cattle prematurely. According to the closing report, the national hog base is $0.15 lower ($43-$48.75, weighted average $47.59). The corn market closed a penny plus lower as the listless market remained stuck in a narrow trading range. The stock market closed mixed with the Dow off 11 points and the Nasdaq up 9.
Live futures closed on both sides of unchanged with final settlements ranging from 40 points higher to 95 lower. Nearbys October and December continued to feel the bearish heat from Monday's big crash thanks to follow-through selling and technical concerns. While spot August closed just above its 40-day moving average ($108.12), December slipped further below overhead resistance at it 100-day moving average ($114.65). Beef cut-outs: sharply higher, up $2.22 (select: $193.11) to $2.82 (choice: $196.78) with moderate-to-good demand and light offerings (47 loads of choice cuts, 17 loads of select cuts, 24 loads of trimmings, 17 loads of ground beef).
WEDNESDAY'S CASH CATTLE CALL:
Steady to $2 higher. The parameters of cash potential may take on better definition at midweek, though significant trade volume will probably be delayed until Thursday or Friday.
Feeders also followed Monday's implosion with a round of mixed business. Final settlements ranged from 90 higher in the far deferred to up 95 in the nearby. Technically speaking, charts suggesting decent support around $146-$147 basis October. CME cash feeder index: 09/25: $152.32, off $0.28.
Spot October once again set a new contract low at $55.02. But most lean issues finished 10 to 67 higher. To no one's surprise, nothing surfaced of technical importance. Understandably, few have enough courage to rock the boat right before the release of a quarterly inventory due out Thursday. Carcass value slumped more than a buck lower thanks to softer demand for bellies, ribs and picnics. Pork cut-out: $72.49, off $1.01. CME cash lean index for 09/22: $57.66, off $1.42 (DTN Projected lean index for 09/25: $56.98, off $0.68).
WEDNESDAY'S CASH HOG CALL:
Steady to $1 lower. Expect hog buyers to open the cash market is the morning with bids steady to $1 lower. While the live trade seemed to stabilize a bit on Tuesday, the wholesale product market stayed on the defensive.
For more from John, see www.feelofthemarket.com
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