GENERAL COMMENTS
Cash cattle markets are quiet with bids and asking prices undeveloped through the afternoon. Showlists are larger with most areas posting increased cattle available to packers. This is not expected to spark active trade through the next couple of days with most trade likely to be pushed off to the last half of the week. According to the closing report, the national hog base is unchanged compared with the Prior Day settlement ($54.00-$60.50) weighted average $59.27. The corn futures moved lower in light activity. December futures were 5 1/4 cents lower Monday. The Dow Jones Index is 58 points higher with the Nasdaq down 72 points.
LIVE CATTLE
Live cattle futures closed mixed to mostly lower after trading in a wide range Monday ($0.85 Lower to $0.27 Higher). A combination of short-covering activity and follow-through market weakness developed through the session Monday following limit and near-limit losses in most nearby contracts Friday. The overall tone of the cattle futures complex remains extremely weak as prices have continued to break through November lows, with traders testing October lows in several nearby contract months. This could spark some additional market volatility over the next several days, as traders try to repair some of the damage done in the last several days. Beef cut-outs: higher, $1.93 higher (select, $185.54) and up $2.20 (choice, $208.19) with moderate to good demand and moderate offerings (39 loads of choice cuts, 22 loads of select cuts, 14 loads of trimmings, 26 loads of coarse grinds).
TUESDAY'S CASH CATTLE CALL:
Steady. Cash cattle activity remains at a standstill and likely will stay that way until midweek or later. Showlists are larger in most areas, although this may not spark interest in packers earlier than normal. Asking prices and bids may not be widely seen until Wednesday morning, delaying overall interest.
FEEDER CATTLE:
Feeder cattle futures closed mixed in a moderate range after posting moderate-to-strong losses most of the Monday session ($0.37 lower to $0.47 higher). The inability to spark additional wide-ranging liquidation following Friday's market tumble helped to bring some curious buyers back into deferred contracts. The overall break away from the recent losses could help to build some much-needed stability through the week and spark additional longer-term buyer interest. CME cash feeder index for 12/01 is $156.69 down $0.51.
LEAN HOGS:
Firm gains developed in most lean hog futures through the second half of trading activity Monday ($0.32 lower to $1 higher). Buyers continue to focus on the support in market fundamentals and potential for firm pork values through the end of the year. It is uncertain just how much additional volume will be able to develop through the rest of the week, but if traders can create stability at these price levels, commercial interest will likely move into the market. Carcass values shifted higher following firm gains in all primals except loins and ribs. Pork cut-out: $83.94 up $0.59. CME cash lean index for 11/30 $63.26, up $0.27. DTN Projected lean index for 12/01 $63.92 up $0.66.
TUESDAY'S CASH HOG CALL:
Mixed. Cash hog markets are expected to remain mixed in a narrow range Tuesday morning with packers continuing to focus on aggressive procurement levels, although the availability of market-ready hogs is keeping many of them from having to push prices significantly higher day after day. Most bids are expected to be stuck in a range from 50 cents lower to $1 per cwt higher. Tuesday's slaughter is expected at 465,000 head with an expected Saturday run at 203,000 head.
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