Feedlot country was generally quiet through the day with a few showlists in the South priced at $111. According to the closing report, the national hog base is .14 lower compared with the prior day settlement ($34.00 to $37.65, weighted average $37.03). For the most part, corn futures closed a nickel lower, checked by impressive late-summer ratings and signs of early harvest progress. The stock market closed higher with the Dow up 14 points and the Nasdaq better by 12.
Those hoping for bullish follow-through Tuesday were disappointed as live contracts quickly pulled in horns and settled 40 to 105 lower. Actually, disappointment was more severe around midsession when most contracts sagged hard with triple-digit losses. Yet a late round of short-covering minimized the damage, allowing spot August through February to settle nearly 100 points above session lows. Beef cut-outs: lower, off .44 (select: $204.41) to $1.10 (choice: $212.53) with light to moderate demand and offerings (56 loads of choice cuts, 20 loads of select cuts, 13 loads of trimmings, 122 loads of ground beef).
WEDNESDAY'S CASH CATTLE CALL:
Steady. Bids and asking prices through feedlot country should take on greater definition at midweek, but significant trade volume could be delayed until Thursday.
Like their live counterparts, feeder futures also failed to build on Monday's surprisingly sharp rally. But they also managed to curb the selling late in the session (perhaps helped in that regard by the struggling tone in the corn market). When the smoke cleared, feeder prices finished 65 to 115 points in the red. CME feeder index 08/27: 150.60, off .04.
While traders seemed to be doing somersaults following Monday's announcement of the new trade agreement between the U.S. and Mexico, the bullish celebration in that regard didn't seem to last for long. Monday's board rally was largely unwoven with most contracts closing 40 to 277 lower. The carcass value closed modestly lower as belly and rib weakness overshadowed strength in fresh cuts. Pork cut-out: $64.90, off .09. Cash lean index: 08/24: 47.79, off 1.14 (DTN Projected lean index for 08/27: 47.09, off .70).
WEDNESDAY'S CASH HOG CALL:
Steady. Expect hog buyers to resume work in the morning with basically steady bids.
John A. Harrington can be reached at email@example.com
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