Thursday Closing Livestock Market Summary - Feeder Futures Close Mostly Higher, Supported by Lower Corn Action

GENERAL COMMENTS:

The cash cattle business never really got off the ground Thursday. Trade volume in the North appears to be essentially done for the week. Although Southern live bids increased from $109 to $111, asking prices of $113-114 prevented significant biz from surfacing in Texas and Kansas. Look for Southern trade volume to develop on Friday. According to the closing report, the national hog base is $0.08 lower compared with the Prior Day settlement ($53-$59.50, weighted average, $59.16). Corn futures finished mostly 3 cents lower, checked by disappointing export sales. The stock market took another tumble with the Dow off 326 points and the Nasdaq down by 157.

LIVE CATTLE:

Action here was pretty much a yawner Thursday with futures slowly swinging in a narrow range. Settlements closed up $0.15 to off $0.07 with buyers and sellers patiently waiting for feedlot cash sales to stage some kind of meaningful price shift. Beef cut-outs closed significantly higher with the choice up $2.26 ($206.92) and the select up $1.16 ($192.35). Product demand was described as moderate to good with moderate supplies.

FRIDAY'S CASH CATTLE CALL:

Steady-$2 lower. While the Northern tier of cattle feeding country appears to be done for the week, Southern country should more fully develop on Friday if packers draw closer to higher feedlot asking prices.

FEEDER CATTLE:

Supported somewhat by softening corn futures, feeder paper closed mostly higher, up $0.35 to $1.05. Near spot October claimed some support from the cash index. Only far-deferred March settled 5 points lower. CME cash feeder index: 10/17: $155.50, up $0.36.

LEAN HOGS:

Remaining in freefall, lean hog futures continued to implode Thursday with little stability stemming from fundamentals. Prices settled sharply lower, off 117 to 240. One of these days, bears will dial in worst-case scenarios, but we're not there yet. Carcass value closed moderately lower, pressured by all primals except the belly and ham. Pork cut-out: $78.12, off $0.40. CME cash lean index for 10/16: $68.17, off $0.42 (DTN Projected lean index for 10/17: $67.76, off $0.42).

FRIDAY'S CASH HOG CALL:

Steady to $2 lower. Look for hog country to remain on the defensive in the morning as large fed supplies continue to dominate.

#CCC