John Harrington DTN Livestock Analyst

DTN AgDayta

Mon Feb 8, 2010 04:37 PM CST

TUESDAY'S CASH HOG CALL:

Cash hogs are called steady to .50 higher. Bids in the morning are expected to open on a steady/firm basis with several major players still relatively short bought.

MONDAY'S WRAP-UP:

According to the closing report, the Iowa hog base price closed .72 higher compared with the prior day settlement ($60.00-67.00, weighted average $64.46). New showlists in cattle country are mixed: smaller in Kansas and Colorado, larger in Texas, and about unchanged in Nebraska. The aggregate offering appears to be smaller, primarily thanks to the cutback in Kansas. Early asking prices are around $89 in the South and $140 plus in the North. The corn market settled about 4 cents higher, lifted by pre-report short covering and outside markets. The Dow closed below 10,000 for the first time in three months on troubling concerns about debt loads in Europe.

LEAN HOGS:

Futures closed up 87 to 240. Fund buying and buy stops worked to lift lean contracts sharply higher with triple digit gains dominating April through August. Speculative buying interest fueled spring and summer issues to jump over 10-day moving averages. The closing product trade was called slow with light to moderate demand and offerings. Carcass value calculated moderately lower, pressured by lower loins, ribs, and hams. Pork cut-out: $68.82, off .30. CME cash lean for 02/04: 65.96, off .15 (DTN Projected lean index for 02/05: 66.04, up .08).

PORK BELLIES:

Futures closed up 100 to 200. Bellies followed the lean pit higher with most business once again taking place in spot Feb. The 14-16# fresh product was not quoted by the closing carlot.

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