GENERAL COMMENTS: Potential cattle buyers limited their efforts to the gathering of new showlists Monday. Ready numbers appear to be much smaller around the feeding circuit, especially in the South. Only Nebraska lots are advertising a few more fed steers and heifers for sale. According to the closing report, the national hog base is $0.26 lower compared with the Prior Day settlement ($41-$47.15, weighted average $46.12). March corn was less than a penny lower on low trading volume, staying confined to a narrow, sideways range in December. Equities continued their late-year struggle with the Dow closing 506 points lower and the Nasdaq off by 156.
LIVE CATTLE: Live contracts fell by 55 to 92 cents Monday, pressured by long liquidation and nervousness regarding half-hearted slaughter schedules through the last half of the month. Despite the premium status of recent country sales, some seem doubtful that the late-year board can stage a meaningful rally. Beef cut-outs closed substantially higher with the choice up $1.71 ($212.67) and select up $0.62 ($203.76). Box demand was called moderate to good with light-to-moderate offering.
TUESDAY'S CASH CATTLE CALL: Steady to $1 higher. Look for another quiet cash session Tuesday with both bids and asking prices poorly defined.
FEEDER CATTLE: Feeder issues were hit hard thanks to profit-taking and uncertain commercial buying interest as 2018 begins to wrap up. Triple-digit losses dominated the market with settlement in the red by $1.20 to $2.45. On an estimated run of 9,000 head (up from 3,900 last week and 5,947 in 2017), Oklahoma City sold feeder steers steady to $3 higher. Heifer mates were called steady to slightly lower in a limited test. CME cash feeder Index for 12/14: $146.20, off $0.70.
LEAN HOGS: Troubled by large cash discounts, lean hog futures closed as much as 55 cents to $1.12 lower. Few were surprised that new spot Feb stubbed its toe on its initial move from the spot gate. Given the wide spread, many fund managers no doubt see the late-week market in profit-taking terms. Carcass value closed modestly higher with fresh cuts, picnics and ribs overshadowing ham and belly weakness. The cutout totaled $71.80, off $1.37. (DTN Projected lean index for CME cash lean index for 12/14: $55.17, off $0.19) CME cash lean index for 12/13: $55.13, off $0.04.
TUESDAY'S CASH HOG CALL: Steady to $1 lower. The cash hog trade is likely to continue with a weak undertone in the morning as ready numbers remain ample and pork demand stays "iffy."
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