Wednesday Closing Livestock Market Summary - Cattle Futures Close Moderately Higher, Buoyed by Ideas of Steady-to-Firm Feedlot Sales

GENERAL COMMENTS:

The fed cattle trade was thinly tested at midweek. Some Southern bids were reported at $112, a good $5 below area asking prices. Scattered live bids were identified in parts of the North at $114. A handful of dressed deals were turned in at $180. For the most part, it looks like significant trade will be delayed until sometime Friday. According to the closing report, the national hog base is $0.61 lower compared with the Prior Day settlement ($46-$51.70, weighted average $50.76). Corn futures settled fractionally higher in lackluster trading leading into the Thanksgiving break. The stock market closed mixed with the Dow slightly lower and the Nasdaq better by 63 points.

LIVE CATTLE:

Pre-holiday short-covering helped live issues settle 70 to 102 higher. Actually, buying interest was limited until after positive USDA news hit the fan. The November on-feed report released near midday looked generally friendly compared to trade expectations, especially in terms of October placement activity (i.e., off 6% versus an average guess among private analysts of 99%). Fed marketings last month exceeded October 2017, largely thanks to on additional business day than 2017. The entire November bunk line surpassed the 2017 inventory by 3%. Beef cut-outs closed higher with the choice off $0.40 ($213.69) and select off $0.17 ($198.26). Box demand was called light to moderate with offerings.

FRIDAY'S CASH CATTLE CALL:

Steady/firm. Beef packers should return from the national feast needing more slaughter cattle to schedule for next week.

FEEDER CATTLE:

Look for feeder futures to close $1.02 to $1.75 higher. Feeders benefitted from the same late charge as seen in the live market. CME cash feeder index: 11/16: $147.81, up $0.41.

LEAN HOGS:

Lean contracts struggled on the close with settlement prices off 75 to 95 cents. Hog prices seemed to slump thanks to a general lack of pre-holiday buying interest. Carcass value closed substantially higher, supported by all primals except the ribs and hams. The cut-out totaled $66.97, up $1.25. CME cash lean index for 11/19: $58.23, off $0.28 (DTN Projected lean index for 11/20: $58.02, off $0.21).

FRIDAY'S CASH HOG CALL:

Steady-$1 higher. Cash hog bids seem set to open on a steady/firm basis in late-week trading thanks to large Saturday kill plans and improving carcass strength.

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