Early week activity in cattle feeding country was limited to the distribution of new showlists. The new offering appears to be generally smaller than last week, especially in Texas and Colorado. According to the closing report, the national hog base is $0.48 lower ($54.00-$60.00, weighted average $58.94). The corn market closed 1-2 cents lower thanks to a lack of buying interest in the wake of last week's bearish yield estimate. The stock market closed higher with the Dow up 17 points and the Nasdaq better by 6.
While both bulls and bears took turns here shoving the market in the "right" direction, when the shouting stopped at the end of the choppy session, prices settled narrowly mixed (i.e., unchanged to off 35). More specifically, most contracts finished approximately 100 points above and below session highs and lows. To say the least, few have a clear idea as to immediate cash prospects. Beef cut-outs: lower, off $0.68 (select: $193.03) to $1.04 (choice: $212.81) with light-to-moderate demand and offerings (42 loads of choice cuts, 30 loads of select cuts, 15 loads of trimmings, 15 loads of ground beef).
TUESDAY'S CASH CATTLE CALL:
Steady. Bids and asking prices throughout feedlot country should remain poorly defined Tuesday with significant trade volume possibly delayed until the second half of the week.
With the exception of a 22-point gain by spot November, feeder issues closed moderately higher (i.e., off 15 to off 52. The premium of the cash index should help ward off immediate selling pressure on front contracts. On an estimated run of 10,600 head (near steady with last week and up from 8,713 in 2016), Oklahoma City sold feeder steers steady to $3 lower (heifer mates were not well tested). Steer calves were marked mostly $1-$2 higher with the girls sold unevenly steady. CME cash feeder index: 11/10: $160.05, up $0.67.
Lean hog futures closed narrowly mixed, up 37 points to off 17. Interestingly, the premium of the cash index is not seen as an impressive fact in this market, at least not for the moment. The carcass value closed moderately lower, pressured by softer demand for hams, ribs, and butts. Pork cut-out: $81.39, off $0.53. CME cash lean index for 11/09: $67.47, off $0.47 (DTN Projected lean index for 11/10: $67.00, off $0.47).
TUESDAY'S CASH HOG CALL:
$1 lower. Hog buyers should resume work in the morning with lower bids based on their assessment of ample offerings and softening product demand.
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