Rick Kment, DTN Market Analyst
GENERAL COMMENTS: According to the closing report, the Iowa hog base compared with the Prior Day's closing weighted average is 1.43 lower ($67 to $84.00, weighted average $80.34). Corn futures closed higher Tuesday, up 5 1/4 in the December and up 6 3/4 in the March.
LIVE CATTLE: Futures closed mostly lower, down 15 to 72. Commercial selling pressure in the front-month December contract stole the spotlight Tuesday. Overall activity across the market remained relatively quiet with traders closely following pressure unfolding in the lean hog futures market as well as outside financial markets. December futures tumbled 72 cents per cwt lower, but still remain in the trading range seen over the last couple months. Other nearby contracts were extremely lightly traded with limited movement, from unchanged to 17 cents per cwt lower. Beef cut-outs: lower (choice, $203.00, down .06; select, $189.95, down $1.53), with light to moderate demand and moderate offerings (80 loads of choice cuts, 60 loads of select, 30 loads of trimmings, 18 loads of ground beef).
WEDNESDAY'S CASH CATTLE CALL: Steady to $1 higher. Cash activity remains undeveloped Tuesday, which points to the potential that sales may be pushed off until the last half of the week. The expected light numbers seen in cash markets last week and steady procurement schedules may put packers in a tight spot unless futures markets completely fall apart.
FEEDER CATTLE: Futures closed lower, down 32 to 50. Feeder cattle futures were heavily impacted by the renewed buyer support in the corn complex Tuesday. Even though live cattle futures were unable to give much support to feeder cattle markets, the majority of trader action followed the late-day support in nearby corn prices. There is growing uncertainty about how much follow-through investment buying may develop through the early part of January, or if most trader interests will be diverted to financial markets and how Christmas shopping seasons are progressing. CME cash feeder index: 12/02: 166.53, up .65.