Light trade volume surfaced in parts of the southern tier of cattle feeding country with live business reported at $124, $1 lower than weighted averages generated in the area last week. According to the closing report, the national hog base is $0.76 lower ($56.00-$62.50, weighted average $60.51). Corn futures closed fractionally mixed in light trade volume. The stock market closed mixed with the Dow up 8 points and the Nasdaq off 18.
Although live issues closed no better than mixed (up 52 to off 7), most contracts did manage to finish well above session lows. Beef cut-outs: sharply higher, up $2.07 (choice: $212.64) to $2.99 (select: $197.76) with moderate-to-good demand and moderate offerings (58 loads of choice cuts, 43 loads of select cuts, zero loads of trimmings, 15 loads of ground beef).
P[L1] D[0x0] M[300x250] OOP[F] ADUNIT T
WEDNESDAY'S CASH CATTLE CALL:
Steady to $2 higher. Packer inquiry should start to improve at midweek, though significant trade volume may be delayed until Thursday or Friday.
Feeder futures settled moderately lower, off mostly 27 to 82. So far this week, feeders have been drifting lower along with their live counterparts. CME cash feeder index: 11/06: $159.04, off $0.42.
Lean hog futures closed 5 to 135 lower with the February contract catching the most heat. The winter issues lost ground to both spot December and deferreds. Given how December has fallen since late October, it may be tough to challenge the 68 high between now and expiration. Carcass value closed solidly higher, supported by all primals except the ham. Pork cut-out: $81.04, up $0.79+. CME cash lean index for 11/03: $68.95, off $0.33 (DTN Projected lean index for 11/06: $68.66, off $0.29).
WEDNESDAY'S CASH HOG CALL:
Steady to $1 lower. Hog buyers should remain on the defensive in the morning, working with bids steady to $1 lower.
For more from John, see http://www.feelofthemarket.com/…
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