Wednesday Closing Livestock Market Summary - Cattle Paper Closes Mixed in Slow Motion Thanks to Pre-Report, Pre-Cash Uncertainty

GENERAL COMMENTS: Cash cattle business remained a no-show at midweek with packer bids largely hidden until Thursday or Friday. Live steers and heifers were priced around $120-$122. We saw a few Northern cattle priced on a dressed basis around $192. According to the closing report, the national hog base is $0.40 lower compared with the Prior Day settlement ($40-$46.49, weighted average $45.44). March corn fell nearly 4 cents, on disappointment from a third consecutive day of no export sales announcements and a worrisome spike in ethanol inventory. Unnerved by interest rate hikes, the stock market closed with new lows for the year. The Dow sank 351 points and the Nasdaq gave up 147.

LIVE CATTLE: Live cattle futures closed on a mixed basis (i.e., up 25 cents to down 32 cents) with nearby issues losing some ground on their deferred counterparts. Between cash news, new on-feed numbers and December delivery potential, there were plenty of reasons here for buyers and sellers to sit on their heels. Beef cut-outs closed mixed with the choice off $0.98 ($211.70) and select up $0.12 ($204.85). Box demand was called light to moderate with light offerings.

THURSDAY'S CASH CATTLE CALL: Steady to $1 higher. While more bids and asking prices should start to define cash potential on Thursday, significant trade volume may be delayed until Friday.

FEEDER CATTLE: With the exception of spot January, which settled unchanged, feeder contracts closed modestly lower in lackluster trade volume (i.e., off 2 to 45 cents). Lower action in the corn market didn't seem to get much buying attention here. CME cash feeder Index for 12/18: $145.61, up $0.06.

LEAN HOGS. For the most part, 2019 lean hog issues finished modestly higher (i.e., up 5 to 22 cents). Some moderate price erosion was seen in the far deferreds. Slow and uneventful action seemed quite logical through the session given new quarterly numbers set to be released Thursday. The pork carcass value crashed more than $2 Wednesday, clobbered by imploding demand for pretty much all major primals (especially picnics and bellies). The cut-out totaled $71.96, off $2.33. (DTN Projected lean index for CME cash lean index for 12/18: $55.00, off $0.07) CME cash lean index for 12/17: $55.07, off $0.06.

THURSDAY'S CASH HOG CALL: Steady to $1 lower. There's little reason, given difficult fundamentals, to doubt that packers won't remain on the cash defensive in the morning.

#completecalfcare