Moderate-to-active business surfaced in the South with steers and heifers marked at $124, $1 lower than last week. Decent trade volume was also evident in parts of the North with most dressed deals marked at $192, roughly steady with last week's weighted average basis Nebraska. According to the closing report, the national hog base is $0.03 lower ($56.00-$61.75, weighted average $60.38). Corn futures settled fractionally higher in light trade volume. Wall Street closed mixed with the Dow off 3 points and the Nasdaq up 21.
Live futures closed sharply lower (i.e., off 102 to 180 lower), pressured by long liquidation, technical-selling and signs of cash weakness. Spot December closed at its lowest point since Oct. 27. A further dip to $121.62 in the morning would close the bullish chart gap created late last month. Bulls hope such an accomplishment might work to reinvigorate buying interest. Beef cut-outs: sharply higher, up $0.49 (choice: $213.13) to $1.13 (select: $198.99) with light-to-moderate demand and moderate offerings (64 loads of choice cuts, 41 loads of select cuts, 17 loads of trimmings, 17 loads of ground beef).
THURSDAY'S CASH CATTLE CALL:
Steady with midweek. While clean-up biz could surface on Thursday and/or Friday, chances are the lion's share of cash trading has already been completed.
Spooked by the sell-off in the live market, feeder contracts fell even harder (i.e., off 255 to 362). If the cash index holds firm through the week, the discount of nearby issues should soon find support. CME cash feeder index: 11/07: $159.01, off $0.03.
Lean contracts closed 10 to 112 lower with February attracting the most selling energy. The February contract settled back below 70 for the first time since Oct. 25. Carcass value closed moderately lower, especially checked by softer demand for fresh cuts. Pork cut-out: $80.67, off $0.37. CME cash lean index for 11/06: $68.66, off $0.29 (DTN Projected lean index for 11/07: $68.35, off $0.31).
THURSDAY'S CASH HOG CALL:
Steady to $1 lower. Look for hog buyers to commence work in the morning with steady/weak bids.
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