DTN Closing Livestock Comments

GENERAL COMMENTS

Light cattle trading was reported in parts of the North at $117 on a live basis, about $1.50 lower than last week's weighted average basis Nebraska. According to the closing report, the national hog base is .49 higher ($82.00-89.00, weighted average $86.96). Corn futures closed generally 4 cents higher, supported by hot and dry conditions. The stock market closed marginally lower in the Dow and 40 higher basis the Nasdaq.

LIVE CATTLE

Live contracts closed sharply lower with prices off as much as 135 to 220. The market was pressured by aggressive long liquidation and signs of further cash and product weakness. Spot August closed at its lowest level since April 25. Beef cut-outs were significantly lower, off .31 (choice, $222.58) to $2.13 (select, $205.32) with light to moderate demand and moderate offerings (67 loads of choice cuts, 47 loads of select cuts, 21 loads of trimmings, 11 loads of ground beef).

THURSDAY'S CASH CATTLE CALL: Steady to $2 lower. Feedlot business could take on greater definition on Thursday and Friday, but price prospects seem generally defensive at this time.

FEEDER CATTLE

Feeders imploded along with their live counterparts, closing as much as 147 to 387 lower. Most issues settle at their lowest levels since late April. Live CME cash feeder index: 07/04: 147.53, off .27.

LEAN HOGS

Lean hog issues finished 32 to 135 higher, supported by follow-through buying interest, short covering and light bull spreading. July, August and December set new contract higher, supported by ideas of strong export demand and the expected hunger of expanding slaughter capacity through the second half of 2017. Carcass value closed modestly higher as stronger processing cuts overshadowed weakness in loins and ribs. Pork cut-out: $104.41, up .09. CME cash lean index for 06/30: 91.71, off .01 (DTN Projected lean index for 07/03: 91.93, up .22).

THURSDAY'S CASH HOG CALL: Steady to $1 higher. Look for hog buyers to resume procurement chore in the morning with bids steady to $1 higher.

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

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