Thursday Closing Livestock Market Summary - NAFTA Worries Cause Hog Futures to Suffer Triple-Digit Losses

GENERAL COMMENTS

The cash cattle trade was generally quiet with just scattered clean-up deals reported here and there (e.g., $120 in Kansas; $190-$191 in Nebraska and Iowa). According to the closing report, the national hog base is $0.09 lower ($63-$71, weighted average $67.64). The corn trade closed virtually flat as traders cautiously anticipated new S&D tables due out Friday, as well as the Dec. 1 stocks report. Wall Street closed significantly higher with the Dow up 205 points and the Nasdaq better by 58.

LIVE CATTLE

Live futures closed modestly higher with settlements up 20 to 22 points. At the conclusion of a slow session, short-covering energy showed a slight advantage over long liquidation. Nothing of technical significance occurred. Beef cut-outs: lower, off 28 (select: $202.95) to $0.99 (choice: $209.07) with moderate-to-good demand and moderate offerings (73 loads of choice cuts, 18 loads of select cuts, zero loads of trimmings, 19 loads of ground beef).

FRIDAY'S CASH CATTLE CALL:

Steady/weak with Tuesday. While a few last-minute deals are possible on Friday, it appears that most business is done for the week.

FEEDER CATTLE:

Feeder contracts finished moderately lower thanks to long liquidation and a general lack of commercial-buying interest. Prices settled off by 12 to 85. Even with the big drop in the cash index Wednesday, spot January remains discounted by nearly $5. CME cash feeder index: 01/05: $148.81, off $2.76.

LEAN HOGS:

Canadian grumbling worked to spook lean hog futures Thursday concerning the uncertain future of NAFTA. Specifically, Canada filed a complaint with the World Trade Organization over tariffs employed by the Trump administration, only weeks before scheduled talks over NAFTA. At the close, lean contracts closed 155 to 195 lower. Carcass value closed moderately lower, pressured by softer demand for butts, bellies and ribs. Pork cut-out: $79.04, off $0.41. CME cash lean index for 01/09: $67.28, up $0.91 (DTN Projected lean index for 01/10: $68.46, up $1.18).

FRIDAY'S CASH HOG CALL:

Steady. Hog bids in the morning should open near steady as packers move to finish covering late-week slaughter needs and secure necessary starters for Monday.