DTN Closing Livestock Comments

GENERAL COMMENTS

Activity in feedlot country was typically limited to the distribution of new showlists. Ready numbers appear to be mixed, larger in the South (especially Kansas) and smaller in the North. Overall, the new offering seems somewhat bigger than last week. According to the closing report, the national hog base is .19 higher ($66.00-71.51, weighted average $69.91). The corn market settled 3-4 cents lower, checked by warmer weather and decent planting progress over the weekend. The stock market closed higher with the Dow up 85 points and the Nasdaq better by 28.

LIVE CATTLE

Live cattle contracts momentarily traded higher in the early rounds, but large waves of selling interest quickly began to break on the price beach. Prices settled 155 to 272 lower thanks to long liquidation and cash worries. It looks like spot June could be back testing support at 122 when business resumes on Tuesday. Beef cut-outs: mostly higher, up $1.71 (choice, $249.40) to off .01 (select, $225.50) with light to moderate demand and offerings (36 loads of choice cuts, 32 loads of select cuts, 6 loads of trimmings,
13 loads of coarse grinds).

TUESDAY'S CASH CATTLE CALL:

Steady to $2 lower. Bids and asking prices should remain poorly defined on Tuesday with significant trade volume probably delayed until Wednesday or later.

FEEDER CATTLE

Following the bear lead of their live counterparts, feeders closed off 135 to 337. Volatility continues to be the name of the game as prices seem to swing from one extreme to the next. On an estimated run of 8,500 head (i.e., down from 12,473 last week and near even with 2016), Oklahoma City sold steers and heifer feeders mostly steady to $4 lower. CME cash feeder index: 05/12: 142.98, off .50.

LEAN HOGS

Had lean contracts managed to find their way out of the dark shadow cast by struggling cattle futures, final settlements might have been much better. Yet such bearish rumblings from the outside made it tough to concentrate on bullish potential at home. So lean issues managed to close no better than mixed, up 12 to off 70 with selling pressure most evident on June and July. Carcass value closed moderately higher, supported by better demand for all primals except the ham. Pork cut-out: $81.85, up .73. CME cash lean index for 05/11: 70.63, up 1.51 (DTN Projected lean index for 05/12: 71.94, up 1.31).

TUESDAY'S CASH HOG CALL

Steady to $1 higher. Look for hog buyers to resume procurement chores in the morning with steady/firm bids.

For more from John, see www.feelofthemarket.com

(CZ)

Copyright 2017 DTN/The Progressive Farmer. All rights reserved.