The cash cattle trade developed Friday afternoon with moderate volume in most areas, live and dressed sales were fully steady with last week (i.e., $111 in the South; $175/$111 in the North). The National hog base closed up $0.88 compared with the Prior Day settlement ($60.00-$66.50, weighted average $64.37). From Friday to Friday livestock futures scored the following changes: Oct LC off $1.15; Dec LC off $0.52; Oct FC off $0.43. Nov FC off $1.93; Oct LH up $2.65; Dec LH up $1.65. Corn futures closed .04 cents plus lower, pressured by typical harvest pressure and isolated stories of better than expected yields. The stock market closed significantly higher with the Dow setting another record high. Talk of tax reform progress in the Senate seemed to be a positive factor with the Dow advancing 165 points and the NASDAQ gaining 23.
Futures closed moderately higher, up 20 to 85. This market was supported by late-week short-covering and reports of fully steady feedlot business. For the moment, live issues appear to be trapped in a narrow trading range (i.e., $110-$112 basis October). The on feed report turned out to be somewhat negative with September placement totaling more than trade expectations: October 1 on feed up 5%; September placement up 13%; marketed in September up 3%. Beef cut-outs: firm (Choice, $199.86 up $0.29, Select $191.14 up $0.38) on moderate demand and light offerings (48 loads of choice cuts, 17 loads of select cuts, 13 loads of trimmings, 24 loads of coarse grinds).
MONDAY'S CASH CATTLE CALL:
Steady. Monday's activity will be limited to the distribution of new showlists, we expect ready numbers to be about steady with this week's offering.
Futures closed moderately higher, up 12 to 82. Feeder contracts followed the general pattern set in the live market. Besides the premium status of deferred live contracts, feeders were also supported by lower corn business and the premium of the cash index. CME cash feeder index: 10/19: $154.79, off $0.29.
Futures closed mostly higher, up 20 to 62. Hog contracts finished a successful week with moderate gains, boosted by a combination of greater packer spending and firming carcass value. Note that both December and February closed the week at the highest levels seen since mid-August. Given that cash sales have been unusually strong for October, the big question going forward is how much higher packer spending will develop. Note that the weekly hog slaughter closed below 2.5 million for the first time in weeks. Pork cut-out: $75.50 (FOB Plant) up $1.18. CME cash lean 10/18: $63.34, up $1.13 (DTN Projected lean index for 10/19: $64.21, up $0.87).
MONDAYS CASH HOG CALL:
$1 higher. Look for hog buyers to start out on Monday with firm bids, concerned about both relatively tight supplies and appreciating carcass value.
John Harrington can be reached at email@example.com
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