The fed cattle market was generally quiet with scattered deals reported in parts of Nebraska ($192) and Texas ($122). According to the closing report, the national hog base is $0.58 lower ($55.00-$62.25, weighted average $59.90). The World Board raised its estimate of 2017-2018 corn ending stocks to 2.487 billion bushels, 127 million bushels more than the average private guess. The corn market took the bearish news hard, closing 6 cents-plus lower. Troubled by reports that the Senate might not pass a corporate tax cut until 2019, the Dow closed 101 points lower with the Nasdaq off 39.
Live issues put in a relatively calm session, ending in mixed prices (i.e., up 60 to off 45). Nearby contracts generally lost ground to deferred counterparts. Beef cut-outs: lower, off $0.39 (choice: $212.74) to $0.59 (select: $198.30) with light-to-moderate demand and offerings (41 loads of choice cuts, 23 loads of select cuts, 19 loads of trimmings, 20 loads of ground beef).
FRIDAY'S CASH CATTLE CALL:
Steady with midweek. Besides a few clean-up deals here and there, Friday cash should be quiet with business done for the week.
Feeder futures closed with respectable gains, up 35 to 115 points. Besides short-covering and the premium status of the cash index, prices were supported by slumping corn futures. CME cash feeder index: 11/08: $158.98, off $0.03.
Lean hog futures completed a rather uneventful trading session with contracts swinging in limited ranges and closing mixed (i.e., up 47 to off 37). February did manage to close back above 70, though such a feat may be more psychologically encouraging than technically significant. Carcass value closed moderately higher, supported by better demand for bellies, loins and picnics. Pork cut-out: $80.67, off $0.37. CME cash lean index for 11/07: $68.35, off $0.31 (DTN Projected lean index for 11/08: $67.94, off $0.41).
FRIDAY'S CASH HOG CALL:
Steady to $1 lower. Late-week hog buyers are likely to wrap up procurement chores with a final round of steady/soft bids.
For more from John, see http://www.feelofthemarket.com/…
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