Wednesday Closing Livestock Market Summary - Midweek Futures Close With Mixed Results

GENERAL COMMENTS:

Although the cash cattle arena was peppered with some preliminary bids (i.e., $180 to $183 in the North) and asking prices (i.e., $119 to $120 in the South; $187-plus in the North), nothing really came together to form meaningful trade volume. According to the closing report, the national hog base is .26 higher compared with the prior fay settlement ($45.00 to $50.74, weighted average $49.59). Supported by bean strength and encouraging talk about the possibility of China and the U.S. mending trade fences, corn futures managed to close 4 cents-plus higher. The stock market exploded higher as Chairman Powell touted interest rate stability. The Dow closed 617 points in the green with the Nasdaq up 208.

LIVE CATTLE:

Live futures closed narrowly mixed with front-end prices ranging from 7 cents higher to 5 cents lower. While bulls didn't seem to get much bang for their buck, a few higher feedlot bids should have been supportive of the discount of spot December. Beef cut-outs closed mixed with the choice off $0.72 ($213.28) and select off $1.74 ($198.50). Box demand was called light demand and moderate offering.

THURSDAY'S CASH CATTLE CALL:

Steady to $2 higher. Packer inquiry could start to gather more steam Thursday, but substantial trade volume could be delayed until Friday.

FEEDER CATTLE:

Feeder issues closed 62 cents to 75 cents lower, checked by long liquidation and midweek profit-taking. Prices were also weighed by the rather surprising rally in the corn market. CME cash feeder Index for 11/27: $147.91, off $0.26.

LEAN HOGS:

Lean prices closed up 7 cents to off 55 cents as 2019 contracts lost more ground to their nearby counterparts. Hog slaughter has been disrupted recently by winter storms across the Midwest, and some analysts expect the backlog to be cleared next week. Carcass value closed moderately lower, pressured by softening. demand for loins and bellies. The cut-out totaled $67.74, off $0.53 (DTN Projected lean index for 11/26: $57.17, off $0.27) CME cash lean index for 11/27: $57.17, off $0.27.

THURSDAY'S CASH HOG CALL:

Steady. Look for Thursday's cash hog trade to start out with steady/firm bids.

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