AFTERNOON LIVESTOCK COMMENTS
John Harrington, DTN Livestock Analyst
GENERAL COMMENTS: According to the closing report, the Iowa hog base closed 0.25 higher compared with the Prior Day settlement ($95.00-107.75, weighted average $106.99). Corn futures closed lower, down 4 3/4 in the December and down 4 1/2 in the March.
LIVE CATTLE: Futures closed mixed, up 7 to down 70. Live cattle futures bounced higher and lower through most of the trading session with early losses unable to hold given the underlying support building in the feeder cattle complex. Traders are looking for additional longer-term support, but unless beef values are able to stabilize in the near future, additional pressure could continue to develop in both nearby and deferred live cattle futures. February futures posted the most significant losses of 70 cents per cwt by the end of the trading session, with all other nearby contracts remaining mixed in a narrow trading range. Beef cut-outs: Lower (Choice, $239.17 -3.85, Select 227.29 -1.18) with light to moderate demand and moderate to heavy offerings (108 loads of choice cuts, 55 loads of select cuts, 43 loads of trimmings, 27 loads of coarse grinds). .
WEDNESDAY'S CASH CATTLE CALL: Steady to $2 Lower. Cash cattle markets remain inactive with bids still unavailable at this point as packers try to use whatever leverage they have in order to reduce procurement costs at the end of September. A few asking prices are seen at $161 and higher in the South and $247 and higher in the North. This is expected to be where asking prices remain through midweek. It would not be surprising if active trade was delayed until Thursday or later.
FEEDER CATTLE: Futures closed higher, up 42 to 110. Strong support in end-of-year contracts helped refocus trade activity in not only the feeder cattle market Tuesday, but the entire cattle complex. Inability of the market to find a direction early in the trading session quickly changed to a strong market surge following pressure in grain markets and additional focus on the potential to keep feeder cattle supplies tight through the end of the year and into spring 2015. The fundamental support in beef values and live cattle markets is limiting additional trade interest, but so far, commercial feeder cattle buyers are trying to draw additional attention to the complex. CME cash feeder index: 09/22: 230.39, up .70.