Aside from a smattering of cash bids (i.e., $107-$108 in the South and $172-$173 in the North), the cash cattle trade remained at a standstill. According to the closing report, the national hog base is $1.36 lower compared with the Prior Day settlement ($67-$73, weighted average $70.62). Corn futures settled about a penny plus higher in slow market conditions. The stock market closed 79 points higher in the Dow and fractionally lower basis the Nasdaq.
Live contracts bolted sharply higher, up 122 to 253. When spot August blasted through chart resistance at $107.65, a major wave of technical-buying was triggered, pushing the spot contract to its best close since March 16 (i.e., $108.95). Beef cut-outs: higher, up $0.23 (select: $197.09) to $0.41 (choice: $204.80) with moderate demand and offerings (81 loads of choice cuts, 22 loads of select cuts, 9 loads of trimmings, 11 loads of ground beef).
THURSDAY'S CASH CATTLE CALL:
Steady to $2 higher. Cattle buying interest should start Wednesday with more bids around $108 in the South and $173 in the North. Asking prices should stay firm at $115 live and $180-$183 in the North.
Following the bullish trade lead of futures, feeders closed 155 to 317 higher. Spot August notched its best close since Feb. 20 (i.e., $154.45). CME feeder index 07/17: $148.59, up $0.22.
Lean futures settled on a mixed basis, up as much as 182 in late 2019 and down as much as 70 in spot August. Carcass value closed sharply lower with all primals losing ground except the belly. Pork cut-out: $82.35, off $1.85. CME cash lean index for 07/16: $79.69, off $0.65 (DTN Projected lean index for 07/17: $79.15, off $0.54).
THURSDAY'S CASH HOG CALL:
Steady to $1 lower. Look for hog buyers to resume procurement chores in the morning with another round of defensive bids.
John A. Harrington can be reached at email@example.com
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