DTN Closing Livestock Comments

GENERAL COMMENTS

Besides a few scattered sales in Kansas at $128 (i.e., another $2 lower), the cash cattle trade pretty much went untested with both buyers and sellers reluctant to put their foot on base. According to the closing report, the national hog base is $1.60 higher ($78-$86, weighted average $83.87). The corn market closed roughly 2 cents higher, recovering from early selling and a bit more rain in the forecast. The stock market closed lower with the Dow off 14 points and the Nasdaq down by 29. `

LIVE CATTLE

Spot June plunged another 200 points lower on the close, further hammered by long liquidation and closing at its lowest level since May 24. On the other hand, the balance of the board closed no worse that narrowly mixed as profit-taking interest sponsored at least some temporary stability. Beef cut-outs: significantly lower, off $0.13 (select, $220.53) to $1.29 (choice, $249.74) with light to moderate demand and moderate offerings (74 loads of choice cuts, 29 loads of select cuts, zero loads of trimmings, 23 loads of coarse grinds).

FRIDAY'S CASH CATTLE CALL:

Steady/weak with Wednesday. WTD volume totals look moderate at best, but there may be too much bearish dust in the late week air for much more business to develop.

FEEDER CATTLE

Feeders managed a modest dead-cat bounce Thursday with prices settling generally 12 to 95 higher. Unfortunately, 2017 issues remain well below 40-day moving averages and clearly walk with a limp. CME cash feeder index: 06/14: $152.73 off $1.19.

LEAN HOGS

Despite further signs of a red-hot cash market, hog traders decided Thursday to focus on more long-term worries. Indeed, nervousness about the market's ability to handle expanding numbers over the next year triggered long liquidation and triple-digit losses. Futures settled mostly 52 to 147 lower with new spot July holding up the best (but still closing below the cash index). August settled below support at 80 for the first time since May 24. The carcass value closed on a steady/weak basis with higher butts, hams and bellies nearly offsetting softer loins, ribs and picnics. Pork cut-out: $94.90, off $0.17. CME cash lean index for 06/13: $82.10, up $0.94 (DTN Projected lean index for 06/14: $82.93, up $0.83).

FRIDAY'S CASH HOG CALL

$1-$2 higher. Look for cash hog buyers to keep their checkbooks out in the morning, ready to match firm asking prices in order to complete the week's kill needs.

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

(CZ)

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