Friday Closing Livestock Market Summary - Late-Week Profit-Taking Lifts Cattle Futures Higher on Close

GENERAL COMMENTS

The cash cattle trade was very quiet Friday with most showlists cleaned up thanks to early week business. The National hog base closed off $0.45 compared with the Prior Day settlement ($63.00-$41.50, weighted average $69.45). From Friday to Friday livestock futures scored the following changes: Feb LC off $1.88; Apr LC off $1.40; Jan FC off $2.27; Mar FC up $0.68; Feb LH up $0.15; Apr LH off $1.75. Corn futures closed 2 cents plus lower, pressured by a higher crop estimate and higher than expected December 1 stocks. The stock market closed higher with the Dow up 228 and the better by 49 NASDAQ.

LIVE CATTLE

Futures closed mostly moderately higher, up 25 to 90. Late-week futures were supported by short-covering, profit-taking, and modest adjustments to early week selling. After making multiple-month lows on Tuesday, live contracts really didn't do much through the balance of the week. Prices have stabilized but only at low levels. Beef cut-outs: lower (Choice, $208.23 off $0.84, Select $201.64 off $1.31) on light to moderate demand and light offerings (53 loads of choice cuts, 15 loads of select cuts, 19 loads of trimmings, 20 loads of coarse grinds).

TUESDAY'S CASH CATTLE CALL:

Steady to $2 lower. Tuesday should be generally slow with packers picking up new showlists and assessing mid-month slaughter needs.

FEEDER CATTLE:

Futures closed moderately to sharply higher, up 10 to 127. Feeder issues bounced higher, thanks to late-week short-covering. Yet Friday's rally was certainly not technically significant. Charts remain in a bearish downtrend. Positively, the cash index continues to hold a premium with the board. Additionally, further bearishness in the corn market is generally supportive of feeder cattle value. CME cash feeder index: 01/11: $146.80, off $2.01.

LEAN HOGS:

Futures closed mostly higher, up 60 to off 12. It proved to be a generally corrective week for the lean trade, cooling off some from the significant buying interest seen in previous weeks. Yet the summer contracts did seem to rekindle buying interest above the 40-day moving average Friday. All eyes will be focused on the cash market next week with many wondering if recent bullish momentum can be maintained. Pork cut-out: $79.81 (FOB Plant) up $0.77. CME cash lean 01/10: $68.46, up $1.18 (DTN Projected lean index for 01/11: $69.80, up $1.34.

TUESDAY'S CASH HOG CALL:

Steady. Cash hog buyers should resume business on Tuesday with generally steady bids.