Tuesday Closing Livestock Market Update - Cattle Futures Close Lower Thanks to Long Liquidation, Lackluster Buying Interest by Packers

GENERAL COMMENTS:

The feedlot cash cattle trade was not tested through the day with just a few starter bids noted in parts of the North at $174. According to the closing report, the national hog base is delayed due to packer submission problems. The corn trade closed about a penny higher thanks to a general lack of selling interest. The stock market closed lower with the Dow off 125 points and the Nasdaq down by 31.

LIVE CATTLE:

Live contracts closed lower with nearbys holding up better than deferreds. Overall, cattle futures lost $0.02 to $0.92. Beef cut-outs closed significantly higher with the choice up $100.00 ($210.28) and select off $0.80 ($196.86). Box demand was called light to moderate.

WEDNESDAY'S CASH CATTLE CALL:

Steady-$2 higher. The potential of the cash cattle trade could start to take on more definite shape at midweek, but significant trade volume could easily be delayed until Thursday or Friday.

FEEDER CATTLE:

Feeder issues claimed early week profits Tuesday with most contracts settling off $0.57 to $1.05. CME cash feeder index: 10/22: $155.06, off $0.31.

LEAN HOGS:

Lean futures capitalized on follow-through buying and further evidence of greater country spending. When the dust settled at the close of the session, most issues had advanced by 112 to 180 points. The carcass value closed moderately lower, checked by loins, picnics and bellies. Pork cut-out: $77.86, off $0.53. CME cash lean index for 10/19: $66.43, off $0.79 (DTN Projected Index for 10/22: $65.95, off $0.48).

WEDNESDAY'S CASH HOG CALL:

Steady to $2 lower. Opening bids in the morning should be a bit on the defensive thanks to plentiful country supplies and uncertain pork demand.

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