DTN Closing Livestock Comments

GENERAL COMMENTS

Besides a few scattered clean-up deals in parts of the North, feedlot country was very quiet Thursday. Trade volume totals on Wednesday appear to be sufficient to generally satisfy the marketing needs of both sides. According to the closing report, the national hog base is .02 higher ($56.00-63.75, weighted average $62.13). Corn futures popped another 4-cents-plus higher, further supported by drought conditions in Argentina and the western U.S. Plains. Spooked by the Trump administration's plans to impose tariffs on steel and aluminum, the stock market closed sharply lower. The Dow finished 420 points in the red with the Nasdaq off 92.

LIVE CATTLE

After all the bearish hammering through the first half of the week, traders pretty much called a truce with prices closing no worse than mixed (i.e., up 5 to off 32). On the other hand, spot April could even manage to produce a respectable dead-cat bounce, not even in the face of a $3 cash premium. Beef cut-outs: solidly higher, up .50 (select: $215.60) to $1.27 (choice: $222.30) with light to moderate demand and offerings (74 loads of choice cuts, 21 loads of select cuts, zero loads of trimmings, 24 loads of ground beef).

FRIDAY'S CASH CATTLE CALL:

Steady with Wednesday's decline. Though the lion's share of cash business is done for the week, we could see some isolated trades here and there in clean-up action. That said, don't look for anything outside the price range established at midweek.

FEEDER CATTLE:

Feeder futures also closed with uneven results in slow volume. Settlements ranged from 30 points higher to 62 lower. Given the budding corn rally and the substantial discount of summer live futures, bulls may have a tough time rebuilding their case anytime soon. CME cash feeder index: 02/28: 147.33, off .61.

LEAN HOGS:

The bleeding may have slowed somewhat in lean hog futures Thursday, but there was still plenty of blood on the floor when the last trade was made. Lean contracts closed 25 to 110 lower thanks to follow-through selling, technical worries, and ideas of faltering pork demand in the face of stubbornly high production. July and August attracted the most selling interest, losing ground to both nearbys and the far deferreds. Carcass value closed near steady with a bounce in belly prices helping to offset weakness in fresh cuts and picnics. Pork cut-out: $77.38, off .06. CME cash lean index for 02/27: 68.57, off .26 (DTN Projected lean index for 02/28: 68.36, off .21).

FRIDAY'S CASH HOG CALL:

Steady. Hog buyers are expected to wrap-up late week procurement chores with near steady bids.

John Harrington can be reached at harringtonsfotm@gmail.com

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