DTN Closing Livestock Comments

Cattle Futures Reverse From Early Week Rally

(DTN file photo)

Closing Comments

The cash cattle trade remains untested through the day with neither bids nor asking prices well defined. A few showlists in the South were priced around $128-$130. According to the closing report, the national hog base is $0.55 higher ($61.00-$68.75, weighted average $66.46). Most corn contracts finished about a penny higher at the conclusion of a lackluster and technically insignificant session. The stock market closed lower ahead of expected Fed intentions to raise interest rates. The Dow closed 44 points lower and the Nasdaq settled off 18.

LIVE CATTLE

Monday's late sell-off reaffirming overhead chat resistance seemed to renew bearish attitudes through Tuesday's session. Prices settled 55 to 142 lower with spot April and June getting swamped with triple-digit losses. Tuesday's pullback seems to reinforce ideas that April is stuck a $4 range (i.e., $114-$119). Beef cut-outs: mixed, up $1.56 (select, $213.89) to off $0.41 (choice, $220.14) with light-to-moderate demand and offerings (50 loads of choice cuts, 20 loads of select cuts, 6 loads of trimmings, 15 loads of coarse grinds).

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WEDNESDAY'S CASH CATTLE CALL:

Steady to $2 higher. Cash marketing has hatched as early as Wednesday over the last several weeks, and we could easily see the same pattern surface Wednesday. Between last week's larger kill and smaller trade volume totals, it seems reasonable to assume that packers remain relatively short-bought.

FEEDER CATTLE

Although feeder contracts closed moderately lower (i.e., off 47 to 107), most months managed to successful defend the lion's share of Monday's impressive surge. CME cash feeder index: 03/13: $127.42 up $0.33.

LEAN HOGS

Lean hog futures closed moderately higher for the most part, up 12 to 60. Nearby issues gained on their deferred counterparts, supported by follow-through buying and bull spreading interest. Spot April finished as high as $70.82, the best settlement seen since Feb. 14. The carcass value closed moderately higher thanks some appreciation in the loin, ham, and belly primals. Pork cut-out: $82.76, up $0.40. CME cash lean index for 03/10: $72.14, off $0.37 (DTN Projected lean index for 03/13: $71.94, off $0.20).

WEDNESDAY'S CASH HOG CALL

Steady to $1 higher. Opening cash bids at midweek should have a firm undertone.

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

(ES)

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