The cash cattle market was typically quiet as the new week began with packers concentrating on the collection of new showlists. The offering appears to be generally larger with only Colorado showing fewer ready steers and heifers. According to the closing report, the national hog base is $0.45 higher ($58.50-$65.36, weighted average $64.79). Corn futures closed essentially flat at the conclusion of a lackluster trading session. The stock market closed lower with the Dow off 85 points and the Nasdaq down by 2.
Live futures bolted out of the starting gate this morning, running hard to catch up with the runaway cash market. With nearby contracts leading the charge, prices settled 57 to 420 points higher. December through June set new contract highs. Beef cut-outs: mixed, up $1.16 (select: $193.64) to off $0.28 (choice: $203.02) with light-to-moderate demand and offerings (42 loads of choice cuts, 35 loads of select cuts, 5 loads of trimmings, 15 loads of ground beef).
TUESDAY'S CASH CATTLE CALL:
Steady to $2 higher. In all likelihood, bids and asking prices will remain poorly defined on Tuesday with significant trade volume possibly delayed until Thursday or Friday.
Mirroring the bullish reaction in the live market, feeder issues closed 107 to 140 points. Needless to say, the inflating premiums of deferred live contracts represent increasingly attractive targets for commercial players. Note the November through March set new contract highs. On an estimated run of 9,200 head (up from 6,671 last week and 7,179 in 2016), Oklahoma City sold feeder steers $2-$9 higher. Heifer mates were marked $3-$8 higher. Steer calves sold mostly $7-$12 higher. Heifer calves under 500 lbs. traded $5-$9 higher while their heavier sisters were tagged steady to $3 higher. CME cash feeder index: 10/27: $154.93, off $0.19.
Lean hog contracts closed solidly higher, advancing 27 to 80 higher. Early week buying energy was linked to the premium of the cash index, technical buying, and spillover bullishness from the cattle complex. Once again, February through set new contract highs. Carcass value jumped more than a dollar higher, supported by better demand for all primals except the loin. Pork cut-out: $78.57, up $1.01. CME cash lean index for 10/26: $68.94, up $0.66 (DTN Projected lean index for 10/27: $69.09, up $0.15).
TUEDAY'S CASH HOG CALL:
Steady to $1 higher. Look for opening bids in the morning to be on a stead/firm basis.
John Harrington can be reached at firstname.lastname@example.org
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