DTN Closing Livestock Comments

Closing Comments

Feedlot country normally quiet Monday as packers limited efforts to the collection of new showlists. The new offering appears to be somewhat larger with only Kansas producers showing a few less ready steers and heifers. According to the closing report, the national hog base is $0.72 higher ($61.00-$68.75, weighted average $67.02). The corn market settled 3-plus cents lower, pressured by follow-through selling and growing harvest potential in South America. The stock market closed mixed with the Dow off 21 points and the Nasdaq positive by 14.

LIVE CATTLE

Live cattle issues settled moderately higher, up 15 to 60 points. Yet spot April sold off late in the session, once again pressured by tough overhead resistance at 119. Beef cut-outs: solidly higher, up $0.72 (choice, $220.55) to $1.34 (select, $212.33) with moderate demand and offerings (69 loads of choice cuts, 26 loads of select cuts, 3 loads of trimmings, 23 loads of coarse grinds).

TUESDAY'S CASH CATTLE CALL:

Steady to $2 higher. Tuesday should be typically slow with few actual bids and asking prices making it to the table. Significant trade volume should be delayed until Thursday or Friday.

FEEDER CATTLE

Feeder contracts closed sharply higher, up 112 to 142. Determined buying was linked to follow-through buying and technical encouragement. Note how the market has broken above long-held lateral trading ranges with most issues now well above 40-day moving averages. On an estimated run of 7,100 head (down from 8,069 last week but greater than the 6,267 counted in 2016), Oklahoma City cold feeder steers and calves steady to $2 higher. CME cash feeder index: 03/10: $127.09 off $0.13.

LEAN HOGS

Suddenly awakening from a long stupor, lean issues aggressively advanced by triple digits. Most contracts closed 127 to 205 higher, at long last making a positive nod toward the cash index premium. Spot April vaulted over 70 for the first time since Feb. 21. Carcass value closed moderately higher, supported by all primals (especially fresh cuts) the rib. Pork cut-out: $81.75, up $0.69. CME cash lean index for 03/09: $72.51, off $0.08 (DTN Projected lean index for 03/10: $72.14, off $0.37).

TUESDAY'S CASH HOG CALL

Steady to $1 higher. Look for the cash hog trade to have a firm undertone in the morning tied to carryover buying interest and improving carcass value.

For more from John, see http://www.feelofthemarket.com/…

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