Cash cattle traders essentially put in another doing-nothing session. A few bids were noted in parts of the South at $111, $4-$5 below area asking prices. Beyond that, cash potential remain as dead as the city morgue at midnight. According to the closing report, the national hog base is $.31 higher ($59.00-$66.50, weighted average $65.52). Most corn contracts closed just shy of 2 cents lower, drifting south in lackluster volume for no apparent reason. The stock market closed lower with the Dow off 112 points and the Nasdaq down by 34.
After chopping around in a fairly wide range through the morning, live contracts settled on a mixed basis, up 27 to off 60. Soon-to-be-spot December closed at its highest point since July 19 (i.e., 119.512). Beef cut-outs: mixed, up $.08 (choice: $200.21) to off $.30 (select: $192.39) with light to moderate demand and moderate offerings (83 loads of choice cuts, 30 loads of select cuts, 20 loads of trimmings, 31 loads of ground beef).
THURSDAY'S CASH CATTLE CALL:
Steady to $2 higher. We should at least see more bids on the table sometime tomorrow, though significant trade volume could easily be delayed until Friday.
For the most part, feeder issues closed 32 to 67 higher, supported by follow-through buying and short covering. Only spot October closed in the red (i.e., off 27), limited by the proximity of expiration and slight discount of the cash index. January and March set new contract highs. CME cash feeder index: 10/24: 154.58, off .01.
Spot December through next May settled moderately higher while the far deferreds finished generally flat. February through June managed to notch new contract highs. The carcass value slipped modestly lower with lower processing items overshadowing higher loins and picnics. Pork cut-out: $76.35, off $.11. CME cash lean index for 10/23: 66.10, up .87 (DTN Projected lean index for 10/24: 67.32, up 1.22).
THURSDAY'S CASH HOG CALL:
Steady to $1 higher. Look for another round of steady/firm bids in the morning as packer work to fund another larger Saturday klll.
John Harrington can be reached at email@example.com
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