DTN Closing Livestock Comments

GENERAL COMMENTS:

The trading hour glass in cattle country may be quickly running out of sand, but no one has sown much panic yet. Significant trade volume may not surface until late Friday afternoon. Between bids of $112-$114 live/$180 dressed and asking prices of $185-plus, we expect to see at least a moderate level of compromise develop before buyers and sellers throw in the towel for the week. According to the closing report, the national hog base totaled $0.59 higher at $57.58 ($52-$58.50). December corn settled a short nickel higher just before the weekend break thanks to this fall's harvest challenges and active exports. The stock market closed lower with the Dow off 112 points and the Nasdaq down by 77. From Friday to Friday, livestock futures scored the following changes: December LC, off $1.33; February LC, off $1.25; November FC, off $2.30; January FC, up $0.05; December LH, up $0.20; February LH, off $1.72.

LIVE CATTLE:

Traders of live cattle futures put in an extremely cautious round of business Friday, very reluctant to power price shifts until the cash market was truly ready to put its foot on base in one direction or the other. Modest board closings ranged from 5 to 15 cents higher. Beef cut-outs closed lower with the choice off $0.05 ($218.50) and select off $2.78 ($201.47). Box demand was called light to moderate.

MONDAY'S CASH CATTLE CALL:

Steady-$2 higher. Early week activity is expected to be cautious and slow, limited †o the assessment of new showlists. Look for ready numbers to be steady to somewhat larger than late October.

FEEDER CATTLE:

The feeder trade closed moderately lower, off 47 to 85 cents. The late-week rally in the corn market no doubt proved to be a factor funding negative price action here. CME cash feeder index: 11/01: $153.89, off $0.29.

LEAN HOGS:

Lean issues closed on a mixed basis with settlements ranging from 15 cents higher to 40 cents lower. Trade volume was quite light with nearbys losing ground on deferreds. Carcass value closed moderately lower, pressured by softer demand for picnics, ribs and bellies. The pork cutout totaled $75.07, off $0.66. CME cash lean index for 10/31: $64.07, up $0.17 (DTN Projected Lean Index for 11/01: $64.12, up $0.05).

MONDAY'S CASH HOG CALL:

Steady-$1 lower. Hog buyers are expected to resume procurement chores with bids ranging from steady to $1 lower.

John Harrington can be reached at harringtonsfotm@gmail.com

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