Monday Closing Livestock Market Update - Lean Hog Futures Start Week With Narrowly Mixed Settlements

GENERAL COMMENTS

Activity in the cash cattle arena was typically limited to the distribution of new showlists. Ready supplies appear to be generally larger with only Texas offering more finished steers and heifers. The national hog base is $1.35 lower ($53.00-$59.00, weighted average $57.32). Corn futures closed slightly higher as traders cautiously positioned ahead of new s&d data due out Tuesday. The stock market surged higher in the wake of Irma. The Dow jumped 259 points higher with the Nasdaq better by 73.

LIVE CATTLE

The live trade saw a distinctive split today with lackluster action in nearby issues and decent buying interest in 2018 deferreds. The growth of deferred premiums suggests a growing confidence in the expanding export market (read Chinese demand?). Beef cut-outs: mixed, up $.41 (select, $190.38) to off $.32 (choice, $191.56) with light to moderate demand and moderate to heavy offerings (83 loads of choice cuts, 23 loads of select cuts, 22 loads of trimmings, 27 loads of ground beef).

TUESDAY'S CASH CATTLE CALL:

Steady. Chances are that bids and asking prices will remain poorly defined tomorrow with significant trade volume possibly delayed until Thursday or Friday.

FEEDER CATTLE:

Feeder futures closed 57 to 107 higher, supported by short covering, technical buying, and the improving targets of deferred live contracts. On an estimated run of 8,500 head (up from 4,911 in late August and 6,073 a year earlier), Oklahoma City sold feeder steers and heifers mostly $3 higher compared with two weeks ago. CME cash feeder index: 09/08: $149.01, up $.77.

LEAN HOGS:

Lean hog futures settled narrowly mixed with closes ranging from 32 points higher to 57 lower. Pressure on fourth quarter contracts is probably tied to ongoing questions surrounding the match-up between expanded chain speed and actual market hog numbers. Carcass value held near steady with stronger demand for butts and picnics countering weakness in ribs, bellies, and loins. Pork cut-out: $82.08, off $.04. CME cash lean index for 09/07: 68.94, off .43 (DTN Projected lean index for 09/08: 67.92, off 1.02).

TUESDAYS CASH HOG CALL:

$1-$2 lower. The cash trade is likely to remain on the defensive in the morning as packers continue to lean into negative fundamentals.