GENERAL COMMENTS:
A light-to-moderate trade has developed in parts
of the North, with live deals marked at $113 to $114.50, generally
$1.50 to $2 lower than last week. Dressed business in that area ranges
from $179 to $180, steady to $1 lower than last week's weighted average
basis Nebraska. A light-to-moderate trade has also surfaced in parts of
the South with live deals at $114 to $115, mostly $114, generally $2
lower than last week. According to the closing report, the national hog
base is $0.97 lower compared with the Prior Day settlement ($48-$54.75,
weighted average $53.35). December corn fell a short 4 cents lower,
checked by larger-than-expected stocks held by China. The stock market
closed lower with the Dow off 201 and the Nasdaq down by 123. From
Friday to Friday, livestock futures scored the following changes: Dec
LC, off $2.50; Feb LC, off $4.40; Nov FC, off $3.50; Jan FC, off $5.95;
Dec LH, off $2.32; Feb LH, off $5.15.
LIVE CATTLE:
Cattle bulls were hoping short-bought packers
would eventually have to walk bids some higher. But when the opposite
proved true, mocking higher asking prices, live contracts quickly fell
out of bed. When CME trading was officially closed (and long before
late-week cash potential was determined), live contracts had collapsed.
Beef cut-outs closed significantly lower with the choice off $0.87
($215.20) and select off $0.39 ($198.72). Box demand was called light
with light-to-moderate offerings.
MONDAY'S CASH CATTLE CALL:
Steady-$1 lower. Activity in cattle country
early next week will be limited to the assessment of new showlists. Our
guess is the new fed offering will be somewhat larger than this week.
FEEDER CATTLE:
Feeders issues buckled late this week, closing
just before the weekend by $1.17 to $2.47. Needless to say, buying
interest here was drained in large part by the eroding targets of
deferred live futures. CME cash feeder index: 11/08: $151.63, off $0.60.
LEAN HOGS:
Lean hog futures closed mostly lower with 2019
issues finishing 62 cents to $1.07 lower. Such new year caution clearly
reflects a concern about adequately slaughter capacity will align with
pork production plans and global trade. Unable to find its way out of
the woodshed, carcass value took another thrashing Friday, losing
another buck plus thanks to shrinking demand for fresh cuts, picnics and
bellies. The cut-out totaled $70.27, off $1.30. CME cash lean index for
11/07: $63.38, off $0.34 (DTN Projected lean index for 11/08: $62.77,
off $0.61).
MONDAY'S CASH HOG CALL:
Steady-$1 lower. Hog buyers are expected to
resume procurement chores on Monday with generally defensive efforts,
helped in that regard by historically huge market hog supplies.
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