Friday Closing Livestock Market Summary - Hog Futures Finish Pre-Holiday Business Week With Limit Gains

GENERAL COMMENTS:

A light to moderate trade developed in parts of the South with live prices at $114, generally steady with last week's weighted averages. A light dressed trade has taken place in parts of Nebraska with dressed prices at $176 to $178 (mostly $178), generally $2 lower than last week's weighted average. Some asking prices remain firm around $116 to $117 in the South, and $180 in the North. According to the closing report, the national hog base is .02 higher compared with the Prior Day settlement ($46.00-52.44, weighted average $51.60). The late-week corn trade closed about 3 cents lower as traders ignored positive export sales and focused more on generally dry harvest weather conditions. From Friday to Friday livestock futures scored the following changes: Dec LC, up $0.78; Feb LC, up $1.92; Jan FC, up $2.72; Mar FC, up $1.80; Dec LH, up $4.27; Feb LH, up $7.25. The stock market closed higher with the Dow better by 123 points and the Nasdaq in the green by 11.

LIVE CATTLE:

For the most part, live contracts closed moderately higher (i.e., up 20 to 62) with just a few far deferred settling marginally higher. The board's modest advance probably contributed in part to some reports of steady feedlot sales. Beef cut-outs closed lower with the choice off .64 ($212.91) and select off .01 ($197.57). Box demand was called light to moderate with light to moderate offerings.

MONDAY'S CASH CATTLE CALL:

Steady. Anticipate slow activity on Monday with cattle buyers concentrating on the collection of new showlists. Ready numbers could be somewhat larger just before the first drumstick is tossed into the ring. On the other hand, packer appetite should be somewhat larger thanks to the need to cover the slaughter needs of the last full production schedule of November.

FEEDER CATTLE:

Feeder futures sagged further just before the weekend break, pressured by the eroding cash index and pre-holiday long liquidation. Prices settled off 57 to 132 with spot November catching the most bearish heat. CME cash feeder index: 11/15: 147.83, off 1.10.

LEAN HOGS:

Lean hog contracts surged up the limit Friday with 300-point progress supported by aggressive short-covering and the correction of board discounts. To some extent, the continued spread of African Swine Fever in China lit a fire under futures Friday. Carcass value closed moderately lower, curtailed by fresh cuts and processing items. The cut-out totaled $68.18, off .49. CME cash lean index for 11/14: 59.86, off .61 (DTN Projected lean index for 11/15: 59.10, off .76).

MONDAY'S CASH HOG CALL:

Steady. Look for the early week cash hog trade to launch its holiday-shortened schedule with an initial round of generally steady bids.

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