Monday Closing Livestock Market Summary - Meat Futures Launch Holiday Week With Moderate to Solid Price Progress

GENERAL COMMENTS:

Activity in feedlot country Monday was limited to the assessment of pre-holiday ready steers and heifers. New showlists appear to be lower in Texas, Colorado and Nebraska, but higher in Kansas. Our guess is buyers and sellers will try hard to complete marketing chores by late Wednesday (reserving Friday for football and cold turkey sandwiches). According to the closing report, the national hog base is .17 higher compared with the prior day settlement ($46.00-53.00, weighted average $51.77). Corn futures closed 2 to 3 cents lower, pressured by lower bean prices and discouraging progress in U.S./China talks. The stock market closed in the red with the Dow off 395 points and the Nasdaq down by 219.

LIVE CATTLE:

Live contracts closed 27 to 80 higher, supported by bull-spreading interest and early-week short-covering. The next several weeks are expected to be generally cash and product supportive, and that should lend the board some greater premium over the country. Beef cut-outs closed higher with the choice up .48 ($213.37) and select up $1.00 ($198.57). Box demand was called moderate to good with moderate offerings.

TUESDAY'S CASH CATTLE CALL:

Steady. Look for better cattle buying interest to begin surfacing as slaughter needs probably require coverage by late Wednesday.

FEEDER CATTLE:

Following the positive bias of live futures, feeder contracts stepped into the week with gains of 35 to 85. On an estimated run of 7,500 head (down from 8,642 the prior week and near even with 7,170 in 2017), Oklahoma City sold steers and heifers $1 to $4 higher. CME cash feeder index: 11/16: 147.09, off .74.

LEAN HOGS:

Hog bulls certainly didn't forget last Friday's buying enthusiasm. Early-week price progress was very evident on the close as contracts advanced with strong forward progress (i.e., up 95 to 227). Carcass value closed moderately higher, supported by fresh cuts, ribs and hams. The cut-out totaled $68.81, up .63. CME cash lean index for 11/15: 59.10, off .59 (DTN Projected lean index for 11/16: 58.51, off .76).

TUESDAY'S CASH HOG CALL:

Steady-$1 higher. Opening bids in the morning are likely to be on a steady/firm basis as hog buyers work to get a moderate leg-up on next week's kill.

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