DTN Closing Livestock Comments
Livestock Futures Close in Red Thanks to General Lack of Late-Week Buying Interest
GENERAL COMMENTS:
The cash cattle market was poorly tested with Southern feedlot managers continuing to reject bids of $111. According to the midday report, the national hog base was $0.44 higher compared with the Prior Day settlement ($52-$59.37, weighted average $66.08). Corn futures settled 3-4 cents lower, checked in part by canceled buying interest from China. Wall Street closed mixed with the Dow up 64 points and the Nasdaq negative by 38. From Friday to Friday, livestock futures scored the following changes: Oct LC, off $0.07; Dec LC, up $0.60; Oct FC, off $0.05; Nov FC, off $0.52; Dec LH, off $3.40; Feb LH, off $3.20.
LIVE CATTLE:
Live futures closed the week moderately lower, off 20 to 80 points. The late selling seemed reasonable linked to defensive fundamentals. The Oct. 1 Cattle on Feed report was pretty well anticipated: on-feed Oct. 1, up 5%; placed in September, off 5%; marketed in September, off 6%. Beef cut-outs closed significantly higher with the choice up $111.00 ($207.93) and the select up $1.89 ($194.24). Product demand was described as moderate to good with light to moderate supplies.
P[L1] D[0x0] M[300x250] OOP[F] ADUNIT[] T[]
MONDAY'S CASH CATTLE CALL:
Steady-$2 lower. Feedlot action on Monday will be typically slow as packers assess the size of new showlists. Our guess is that the Southern offering should be somewhat larger while the Northern list of ready cattle could be largely even.
FEEDER CATTLE:
Feeders followed their live counterparts lower, closing just before the week to the tune of 32 to 97. CME cash feeder index: 10/18: $155.36, off $0.14.
LEAN HOGS:
Lean issues continued to slump lower on Friday with final losses of 70 to 120. Processing margins continue to grow, ripe to take advantage of larger late-week numbers. Carcass value closed moderately higher, supported by all primals except the belly. Pork cut-out: $78.42, up $0.30. CME cash lean index for 10/17: $67.76, off $0.42 (DTN Projected lean index for 10/18: $67.22, off $0.54).
MONDAY'S CASH HOG CALL:
Steady to $2 lower. Look for hog country to resume cash biz on Monday with sales steady to $2 lower.
John Harrington can be reached at harringtonsfotm@gmail.com
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