DTN Closing Livestock Comments

Closing Comments

Moderate cattle trading surfaced in most areas as feedlots responded to higher packer bids. Most live biz in the South was marked as $128, $3 higher than last week. Dressed deals in the North at mostly $210, $8-$9 higher than last week weighted average basis Nebraska. According to the closing report, the national hog base is $0.19 higher ($63.75-$69.00, weighted average $66.74). The corn trade closed modestly higher, supported a bit by the ongoing reality that the U.S. market remains priced well below the South American competition. The stock market closed sharply higher after the Fed raised interest rates as expected but provided more moderate comments than some were looking for. The Dow advanced by 112 points and the Nasdaq gained 43.

LIVE CATTLE

Jarred back toward the upper limits of a long-held trading range by reports of another jump in packer bids, live contracts closed 32 to 137 higher. Triple-digit gains in spot April through August seemed at least token recognition of the country's growing premium status. Yet, despite runaway cash, spot April once again failed to break above tough chart resistance between 119 and 120. Beef cut-outs: mixed, up $1.18 (choice, $221.32) to off $0.75 (select, $213.14) with light-to -moderate demand and light offerings (67 loads of choice cuts, 25 loads of select cuts, 9 loads of trimmings, 18 loads of coarse grinds).

THURSDAY'S CASH CATTLE CALL:

Steady/firm with the midweek advance. The level of follow-through buying Thursday will depend upon final trade volume totals confirmed by Mandatory in the morning. Needless to say, unsold cattle will be priced near the top of Wednesday's full advance.

FEEDER CATTLE

Feeders quickly got back on track Wednesday, inspired in part by feedlot cash and stronger live futures. Prices settled 40 to 137 higher with March through September landing triple-digit gains. Spot March scored a new weekly higher and closed at its highest perch since Jan. 25. CME cash feeder index: 03/14: $127.61 up $0.19.

LEAN HOGS

Lean hog issues closed moderately lower, off 15 to 75. Profit-taking and long liquidation caused the board to pull back some, yet nearby contracts continue to hold well above 40-day moving averages. Carcass value closed moderately lower, pressured by softer demand for all primals except the rib and belly. Pork cut-out: $82.18, off $0.58. CME cash lean index for 03/13: $71.94, off $0.20 (DTN Projected lean index for 03/14: $71.99, up $0.05).

THURSDAY'S CASH HOG CALL

Steady. Look for cash hog buyers to resume procurement chores in the more with near-steady bids. Saturday's kill is expected to total close to 145,000 head.

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

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