DTN Closing Livestock Comments

Closing Comments

Cash activity in cattle country was typically slow Monday as packers focused exclusively on the collection of new showlists. Ready numbers seem to be mixed, smaller in the South and larger in the North. Generally speaking, the early month offering seems to be near even with last week. According to the closing report, the national hog base is .02 higher ($52.00-58.50, weighted average $56.31). Corn futures jumped 11-12 cents higher, supported by heavy rainfall, area flooding, and possible planting delays. Wall Street closed mixed with the Dow off 27 points and the Nasdaq up 44.

LIVE CATTLE

Monday's choppy session in the live market didn't prove much of anything save the fact that certain traders desired to take profits and at least temporarily put on the brakes. Historically, the large discount of new spot June looks like more than enough anticipatory caution relative to cash vulnerability through the second half of the second quarter. Yet many would argue that historical price maps have not been practically useful for quite some time. Beef cut-outs: explosively higher, up $1.77 (select, $209.45) to $4.49 (choice, $226.27) with moderate to demand and light offerings (32 loads of choice cuts, 24 loads of select cuts, seven loads of trimmings, 11 loads of coarse grinds).

TUESDAY'S CASH CATTLE CALL:

Steady to $2 higher. Expect bids and asking prices to remain poorly defined on Tuesday with significant trade volume possibly postponed until Thursday or Friday.

FEEDER CATTLE

Feeders caught some early week selling pressure and closed 75 to 192 points in the red. -Besides long liquidatio and profit taking, prices were pressured by substantial strength in the corn market. On an estimated run of 6,000 head (down from 9,053 last week and near steady with a year ago), Oklahoma City sold feeder steers and heifers $3 to $8 higher. CME cash feeder index: 04/28: 141.72, up .34.

LEAN HOGS

Lean issues closed on a mixed basis with 2017 contracts losing ground to their 2018 counterparts. Of course, summer contracts saw the most action, largely in the form of profit-taking, the unwinding of bull spreads, and long liquidation. Carcass value closed with a solid advance thanks to better demand for all primals except the loin. Pork cut-out: $75.41, up .95. CME cash lean index for 04/27: 59.64, off .07 (DTN Projected lean index for 04/28: 59.88, up .24).

TUESDAY'S CASH HOG CALL

Steady to $1 higher. Hog buyers should start work in the morning with steady/firm bids.

For more from John, see www.feelofthemarket.com

(CZ)

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