Activity in cattle feeding country Monday was limited to the distribution of new showlists. The late-month offering appears to be mixed, larger in Kansas and Colorado, but smaller in Texas and Nebraska. Overall, the post-holiday offering appears to be smaller than the previous week. According to the closing report, the national hog base is .44 lower ($50.00-58.00, weighted average $56.65). Corn futures closed 3 cents plus lower, hounded by the same negative forces addressed throughout the fall (i.e., large supplies and disappointedly slow exports). The stock market closed mixed with the Dow up 22 points and the Nasdaq off 10.
Live cattle futures returned from the holiday break with a clear sense of bullish mission. Closing prices spiked 95 to 160 points higher, powered by aggressive short coming and technical buying. Spot December managed to close above its 40-day moving average for the first time November 16. Beef cut-outs: significantly lower, off .57 (select: $187.28) to $1.42 (choice: $209.57) with light to moderate demand and offerings (50 loads of choice cuts, 23 loads of select cuts, 7 loads of trimmings, 12 loads of ground beef).
P[L1] D[0x0] M[300x250] OOP[F] ADUNIT T
TUESDAY'S CASH CATTLE CALL:
Steady. Look for bids and asking prices to stay poorly defined with significant trade volume easily postponed until the second half of the week.
Feeders followed the bullish lead of the live market, closing 90 to 135 points higher. The March contract successfully closed above its 40-day moving average. Buying was also encouraged by lower corn prices and the premium status of the cash index. On an estimated run of 7,200 head (i.e., near unchanged from last week and 2016), Oklahoma City sold feeder steers and heifers steady to higher. Calves were marked mostly steady to $3 higher. CME cash feeder index: 11/24: 155.26, off .32.
Lean hog contracts extended the board's late November rally Monday, closing 30 to 127 higher. Pushing back over 64, spot December landed the best close seen since November 6. Carcass value closed moderately higher as stronger demand for butts and picnics overshadowed lower loin and rib sales. Pork cut-out: $82.58, up .26. CME cash lean index for 11/23: NA (DTN Projected lean index for 11/24: 63.08, off .58).
TUESDAY'S CASH HOG CALL:
Steady to $1 lower. The cash hog trade is expected to resume business in the morning with steady/weak bids.
John A. Harrington can be reached at email@example.com
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