The cash cattle trade was very quiet through the day with just a small handful of deals reported in parts of the North (i.e., $190 dressed, $120 live). According to the closing report, the national hog base is $0.59 lower ($52-$58.25, weighted average $57.48). The corn trade closed generally 2 cents lower, pressured by large harvest supplies and slow export biz. The stock market closed higher with the Dow up 187 points and the Nasdaq better by 87.
Live issues closed moderately lower (i.e., off mostly 22 to 90), pressured by long liquidation, uncertain cash potential, and positioning before the late-week release of the Nov. 1 on-feed report. Positively, spot December appears to be having some success in building a shelf of support above its 40-day moving average. Beef cut-outs: mixed, up $0.11 (choice: $210.24) to off $2.78 (select: $187.83) with light-to-moderate demand and light offerings (64 loads of choice cuts, 32 loads of select cuts, 13 loads of trimmings, 53 loads of ground beef).
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FRIDAY'S CASH CATTLE CALL:
Steady with Wednesday. While a few clean-up deals on Friday are possible, we suspect that cash business is essentially done for the week.
Feeder cattle traded modestly lower with closing prices off 5 to 35. January and March are both trying to dig in around 40-day moving averages. CME cash feeder index: 11/15: $158.44, off $0.86.
Lean contracts finished 22 to 102 points lower with most of the selling energy focused on the first three months. While we continue to see steady erosion in the cash index, it still looks like the Rock of Gibraltar compared with spot December. February and April closed right above 100-day moving averages. June settled below its 40-day moving averages, but July and August finished above theirs. Carcass value held about steady Thursday with higher bellies countering weakness in fresh cuts. Pork cut-out: $80.55, off $0.08. CME cash lean index for 11/14: $66.37, off $0.31 (DTN Projected lean index for 11/15: $65.97, off $0.40).
FRIDAY'S CASH HOG CALL:
Steady to $1 lower. Hog buyers are expected to wrap up procurement chores on Friday by opening with a late round of steady/weak bids.
John A. Harrington can be reached at email@example.com
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