DTN Closing Livestock Comments

GENERAL COMMENTS

Activity in cattle feeding country on Monday was limited to the distribution of new showlists. The fed offering appears to be generally smaller than last week, especially in Nebraska and Texas. According to the closing report, the national hog base is $.09 lower ($52.00-to-$58.50, weighted average $57.67). Corn futures closed several cents higher with the help of light buying and short covering. The stock market closed lower for the fourth consecutive session with the Dow off 14 points and the Nasdaq down by 17.

LIVE CATTLE

Live cattle surged higher Monday, landing closed as much as 72 to 237 in the green. Spot April settled above the 100-day moving average, landing it highest finish since March 15 (i.e., $121.72). Beef cut-outs: sharply higher, up $1.59 (select: $201.72) to $3.13 (choice: $215.11) with moderate demand and moderate to heavy offerings (59 loads of choice cuts, 32 loads of select cuts, nine loads of trimmings, 15 loads of ground beef).

TUESDAY'S CASH CATTLE CALL:

Steady to $2 higher. Both bids and asking prices should remain poorly defined on Tuesday with most players focusing on the board's ability to hold the high ground.

FEEDER CATTLE:

Feeders led the early week charge in the cattle complex by closing 127 to 262 higher. Positively, the August contracts managed to close above both its 40-day moving high (for the first time since March 7) and 50% retracement of the first quarter price drop. On an estimated run of 5,200 head (down from 8,010 last week and 9,053 in 2917), Oklahoma City has sold feeder cattle mostly steady to $3 higher. A limited test of calves traded $1-to-$3 higher. CME cash feeder index for 04/20: $138.13, up $1.57.

LEAN HOGS:

Lean futures could never find the first rung of the ladder on Monday, closing in the red for the most part by 37 to 195 points. Despite encouraging seasonal odds for more constructive fundamentals moving from here through midsummer, summer contracts just can't seem to move above the upper 70's. This stickiness is probably tied at least in part to the deep discounts in June and August live cattle futures. Carcass value closed just a little shy of steady with fresh cuts higher and processing items lower. Pork cut-out: $67.87, off $.04. CME cash lean index for 04/19: $56.80, up $.83 (DTN Projected lean index for 04/20: $57.80, up $1.00).

TUESDAY'S CASH HOG CALL:

Steady to $1 higher. Monday's country run seemed very light, and this reality could lend Tuesday's cash opening a firmer undertone.

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

(AG)

Copyright 2018 DTN/The Progressive Farmer. All rights reserved.