DTN Closing Livestock Comments

Lean Hog Futures Close Week Mostly Higher

(DTN file photo)

GENERAL COMMENTS: Cash cattle development has been slower than molasses to develop Friday afternoon. Light to moderate dressed deals were reported in parts of the North at $$187, $3 higher than some biz last week. Late live bids in the South were posted as high as $118-$119, but as of this writing, we can't confirm much trade volume. According to the closing report, the national hog base is $0.48 higher compared with the Prior Day settlement ($43-$48.52, weighted average $47.89). March corn closed up nearly 3 cents. Much of this week's firmer tone was supported by suggestions that China may be getting close to making large U.S. ag purchases. The stock market ended a tough week with another ugly close: the Dow settled off by as much as 474 points, and the Nasdaq lost 219 points on news of a weaker-than-expected jobs report (only 155,000 position added in November), and China-U.S. trade tensions didn't help calm nervous psychology.

LIVE CATTLE: Without suggesting much of a trend or true room for cash potential, live futures settled in a lackluster, mixed range, up 52 to down 27 cents. Weekly beef export statistics released by USDA Friday showed total U.S. exports of fresh and frozen beef at 89,977 metric tons, up 4.7% from the same time last year. Beef cut-outs closed mixed with the choice up $1.62 ($214.29) and select up $2.28 ($200.50). Box demand was called good with moderate-to-heavy offering.

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MONDAY'S CASH CATTLE CALL: Steady to $2 higher. Activity on Monday will probably be limited to the distribution of new showlists. Of course, the size of the offering will hinge to some degree on final trade volume total reported for early December.

FEEDER CATTLE: Feeder contracts also closed mixed (i.e., up 17 to off 27 cents), lending the spot market and out-front price prospects virtually no inspiration. CME cash feeder Index for 12/06: $145.53 off $0.85.

LEAN HOGS: Soon-to-expire spot December settled modestly lower, but most lean issues finished with mixed price progress (i.e., up 55 to down 37 cents). Exports of pork last week totaled 169,176 metric tons, up 1.1%. Some fear that the slower growth of pork exports suggests that the tariff on U.S. pork in Mexico has taken a toll on our biggest foreign market. Carcass value closed sharply higher, supported by all major primals except the rib. The cut-out totaled $73.63, up $1.51. (DTN Projected lean index for CME cash lean index for 12/06: $56.96, off $0.23) CME cash lean index for 12/05: $56.19, off $0.21.

MONDAY'S CASH HOG CALL: Steady. Hog buyers are expected to resume procurement chores early next week with near-steady bids.

John A. Harrington can be reached at harringtonsfotm@gmail.com

(CZ)

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