Wednesday Closing Livestock Market Summary - Beef Futures Close Solidly Higher, Led by Strength in Feeder Market

GENERAL COMMENTS: Feedlot business was marked by a few scattered bids around the circuit Wednesday (e.g., $113 dressed in the North; $112-$114 live in the South), but far below asking prices of around $120-$122 in the South and $190 in the North. According to the closing report, the national hog base is $1.14 lower compared with the Prior Day settlement ($44-$49.87, weighted average $47.51). Corn futures settled fractionally lower in lackluster trade volume. Grain traders continue to wait for the sand to shift regarding the confusing optimism that came out of last week's G-20 Summit. The stock market was closed Wednesday in observation of President H.W. Bush's funeral.

LIVE CATTLE: Live contracts advanced moderately higher with closes ranging 60-97 cents higher. Wednesday's firm undertone was related in part to fears that an early winter could bode ill for production throughout feedlot country in the months ahead. The premium status of spot cash no doubt also lent some support. Beef cut-outs closed mixed with the choice off $0.60 ($213.26) and select off $0.65 ($196.86). Box demand was called light to moderate with fairly good demand and moderate offerings.

THURSDAY'S CASH CATTLE CALL: Steady to $2 higher. Cattle-buying efforts could turn up the gas a bit on Thursday, but packers could easily stick to their pattern of Friday buying.

FEEDER CATTLE: Outpacing their live counterparts, feeders recovered to the tune of 80 cents to $1.20. Traders are torn between the discount of the cash index and the promising premiums of 2019 live issues. CME cash feeder Index for 12/04: $146.39 off $0.33.

LEAN HOGS: Spot December crashed by triple digits, pulled in by the discount of the cash index. Yet the rest of the complex closed sharply higher, up 85 cents to $1.70. The back of the board seemed bolstered by talk that China's impending return to purchasing soybeans may also restart the purchasing of U.S. pork. Carcass value closed solidly higher, supported by better demand for all primals except the loin and ham. The cut-out totaled $71.70, up $0.82. (DTN Projected lean index for CME cash lean index for 12/04: $56.40, up $0.02) CME cash lean index for 11/29: $56.38, up $0.02.

THURSDAY'S CASH HOG CALL: Steady to $1 lower. The combo of plenty of late-week market numbers and acceptable pork demand should allow processors to further augment margins.

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