DTN Closing Livestock Comments

Feeder Futures Lead Cattle Complex Higher

(DTN file photo)

Closing Comments

Aside from a lower internet auction (i.e., on total sales of 1,898 steers and heifers, the weighted average totaled $131.17, $2.18 lower than last week), the cash cattle trade at midweek was extremely quiet. We saw a few bids in the North at 210, and some asking prices were suggested around $215 in the North and $132-$133 in the South). According to the closing report, the national hog base is $0.54 lower ($57.00-$63.00, weighted average $62.77). The corn market closed fractionally higher as traders cautiously positioned ahead of Friday's plantings and stocks report. The stock market closed mixed with the Dow off 42 points and the Nasdaq positive by 22.

LIVE CATTLE

Live issues bounced moderately higher (i.e., up 22 to 57). Despite lower FCE business Wednesday morning, the general country trade remains far above the board. Beef cut-outs: sharply lower, off $2.65 (choice, $216.92) to $2.76 (select, $210.26) with light-to-moderate demand and light offerings (61 loads of choice cuts, 38 loads of select cuts, 6 loads of trimmings, 25' loads of coarse grinds).

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THURSDAY'S CASH CATTLE CALL:

Steady to $2 higher. Cattle buyer interest could start to improve Thursday. While packer margins are narrowing, most are still thought to be short bought.

FEEDER CATTLE

Feeder futures closed sharply higher, up 95 to 162 points higher. The midweek rally was supported by short-covering and commercial buying interest. CME cash feeder index: 03/28: $133.26 up $0.17.

LEAN HOGS

Lean hog contracts settled with mixed results, up 30 to off 70. Nearbys caught a little support thanks to midweek profit-taking and the premium of the cash index. Carcass value got clobbered again Wednesday with all primals losing ground except the belly. Pork cut-out: $77.61, off $1.51. CME cash lean index for 03/24: $70.24, off $0.67 (DTN Projected lean index for 03/27: $69.78, off $0.4667).

THURSDAY'S CASH HOG CALL

Steady to $1 lower. Look for the country hog trade to remain on the defensive, especially in the face of large supplies and struggling carcass value.

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

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