MORNING LIVESTOCK COMMENTS
Rick Kment, DTN Livestock Analyst
GENERAL COMMENTS: According to the closing report, the Iowa hog base closed $0.54 lower compared with the Prior Day settlement ($58.00-$69.50, weighted average $68.44). Corn futures closed lower, down 2 3/4 in the March through September contracts.
LIVE CATTLE: Futures closed mixed, up 50 to down 80. Live cattle futures closed mixed in a moderate trading range after spending most of the session with sharp triple-digit losses. It is uncertain just how much support will continue to be seen in deferred live cattle futures Tuesday morning when traders take another run at the market, but the bounce back in the complex appears to be more based on seller interest running out of gas following aggressive early liquidation Monday morning. Beef cut-outs: lower (choice, $251.41, off $2.33; select, $244.79, down $2.44) with light demand and moderate offerings (66.44 loads of choice cuts, 27.50 loads of select, 20.28 loads of trimmings, 18.70 loads of ground beef).
TUESDAY'S CASH CATTLE CALL: Steady to $2 per cwt lower. Cash cattle market activity logged a typical Monday of inventory taking and showlist distribution. Overall, showlists appear to be mixed with moderately lower numbers in Nebraska likely to limit availability for the last week in January. It is uncertain if trade will start to trickle in early in the week and dribble through the rest of the week similar to the last couple weeks, or if activity will move back to a typical pattern where most sales are end loaded Thursday or Friday.
FEEDER CATTLE: Futures closed triple-digits lower, down 145 to 242. Feeder cattle futures traded sharply lower, but the $1.50 to $2 per cwt losses seems to be the good news in the market which spent most of the trading session $4 to $6 per cwt lower. The lower-than-expected cattle placements in December had little to no effect in drawing buyers back into the market through most of the morning. But the inability to draw additional seller pressure allowed for prices to gain back a significant portion of early losses into the close, helping to potentially weaken the momentum through the rest of the week. CME Feeder Cattle Index 01/23: 217.61, -2.84.