Efforts and energies in feedlot country were typically restricted Monday to the distributions of new showlists. The offering looks generally smaller with only Texas reporting a few less steers and heifers. According to the closing report, the national hog base is $1.47 lower compared with the Prior Day settlement ($64-$69.59, weighted average $66.59). Corn futures settled 2 cents higher, supported by dry conditions over the weekend and ideas of further downgrading in crop ratings. The stock market closed mixed with the Dow off 13 points and the Nasdaq stronger by 21.
For the most part, live cattle issues closed moderately higher, up 30-75 points. Despite evidence of cash strength on Friday, spot August could not find the gumption to ease its considerable discount to country prices. Indeed, it turned out to be the only contract in the complex to finish in the red (i.e., off 20). Beef cut-outs: higher, up $0.65 (choice: $204.82) to $1.03 (select: $198.03) with moderate to fairly good demand and moderate offerings (48 loads of choice cuts, 30 loads of select cuts, 8 loads of trimmings, 13 loads of ground beef).
TUESDAY'S CASH CATTLE CALL:
Steady to $2 higher. Tuesday should be typically quiet with neither preliminary bids nor asking prices evident until midweek or later.
Feeder futures closed on a mixed basis, up 130 to off 42. With bull-spreaders taking some profits, nearbys lost ground to deferreds through the session. On an estimated run of 4,500 head (down from 6,147 the prior week but greater than the 3,940 counted last year), Oklahoma City sold feeder steers $2 higher. Heifer mates were marked $1-$4 higher. CME feeder index 07/20: $148.49, up $0.47.
With the exception of spot August (i.e., closing just 2 points lower), lean futures opened the week solidly higher, up 42 to 137. Indeed, triple-digit gains were scored by contracts covering the fourth quarter of 2018 and the last third of 2019. Carcass value closed moderately lower, checked by softer fresh cuts and bellies. Pork cut-out: $80.07, off $0.79. CME cash lean index for 07/19: $77.83, off $0.79 (DTN Projected lean index for 07/20: $76.90, off $0.53).
TUESDAY'S CASH HOG CALL:
Steady to $1 lower. Look for hog buyers to stay with their rewarding strategy of consistently lower bids.
For more from John, see http://www.feelofthemarket.com/…
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