DTN Closing Livestock Comments

GENERAL COMMENTS:

It was a typical "show and tell" in feedlot country Monday with buyers and sellers primarily interested in the distribution of new showlists. The offering looks generally smaller than last week with only Kansas showing fewer ready cattle. According to the closing report, the national hog base totaled $1.19 lower at $56.19 ($51-$57.75). December corn closed 2-3 cents higher, supported somewhat by wet harvesting conditions here and there. The stock market closed mixed with the Dow up 190 points and the Nasdaq off 28.

LIVE CATTLE:

Despite evidence of some higher country sales on Friday, live futures fell apart Monday with triple-digit losses. Many fear that fourth-quarter beef demand is running out of gas. Put simply, November is not known for the aggressive featuring of beef. Beef cut-outs closed higher with the choice up $0.09 ($218.39) and select up $0.88 ($202.35). Box demand was called moderate to fairly good demand and light offerings.

TUESDAY'S CASH CATTLE CALL:

Steady. Look for poorly defined bids and asking prices on Tuesday, with significant trade volume perhaps delayed until Thursday or later.

FEEDER CATTLE:

Feeder futures followed the bearish descent of their live counterparts. Furthermore, the flagging targets of 2019 live contracts made it difficult for feeder buyers to be more ambitious. On an estimated run of 10,300 head (down from 11,636 the previous week and near even with 2017), Oklahoma City sold feeder steers $1-$3 lower. Heifers traded about steady with the prior week. CME cash feeder index: 11/02: $153.55, off $0.34.

LEAN HOGS:

Lean hog issues closed 52 cents to $1.02 lower, pressured by lower cash sales, larger seasonal offerings and worries over the adequacy of late-year pork demand. Early week carcass value closed modestly lower, checked by all primals except the butt and the rib. The pork cut-out totaled $74.86, off $0.21. CME cash lean index for 11/01: $64.12, up $0.05 (DTN Projected Lean Index for 11/02: $64.12, up $0.04).

TUESDAY'S CASH HOG CALL:

Steady-$1 lower. Look for hog country to resume in the morning with bids steady to $1 lower.

John Harrington can be reached at harringtonsfotm@gmail.com

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