DTN Closing Livestock Comments

Closing Comments

The early week feedlot arena was typically slow as cash players focused on the distribution of new showlists. The fed offerings looks generally mixed, larger in the South and smaller in the North. According to the closing report, the national hog base is $0.13 lower ($61.00-$69.00, weighted average $67.24). The corn market closed 1-2 cents lower, checked by a general lack of positive news. The stock market closed lower with the Dow off 51 points and the Nasdaq down by 21.

LIVE CATTLE:

This remains a market definitely tough to cheer-up. Despite last week's bullish showcase of higher feedlot sales and strong wholesale beef demand, live contracts just keep eroding. Prices settled 10 to 47 lower with spot April slipping below its 40-day moving average. Beef cut-outs: mixed, up $1.53 (choice, $209.60) to off $0.09 (select, $203.96) with moderate demand and heavy offerings (87 loads of choice cuts, 27 loads of select cuts, 12 loads of trimmings, 23 loads of coarse grinds).

TUESDAY'S CASH CATTLE CALL:

Steady to $2 higher. Early week activity is likely to remain limited on Tuesday with both bids and asking prices poorly defined. Significant business will probably be delayed until the second half of the week.

FEEDER CATTLE:

Feeder contracts closed narrowly mixed (i.e., up 47 to off 27) in light trade volume. On an estimated run of 8,500 head (near steady with last week but smaller than 10,083 in 2016), Oklahoma City sold steers and heifers steady to $2 higher. CME cash feeder index: 03/03: $126.86, up $0.23.

LEAN HOGS:

Lean futures settled 7 to 42 points higher, supported by short-covering and the premium status of the cash index. Yet the early week rally was not technically significant, more on the order of a dead-cat bounce. The carcass value surged higher Monday, led by sharp gains in the belly (up $7.25) and butt (up $2.73) primals. Pork cut-out: $82.53, up $1.90. CME cash lean index for 03/02: $73.38, off $0.63 (DTN Projected lean index for 03/03: $72.92, off $0.46).

TUESDAY'S CASH HOG CALL:

Steady. Look for hog buyers to begin with near-steady bids in the morning.

John A. Harrington can be reached at john.harrington@dtn.com

(ES)

Copyright 2017 DTN/The Progressive Farmer. All rights reserved.