After another long waiting game, short-bought packers finally came for ready steers and heifers. Live sales jumped to mostly $114, roughly $2 higher. On the other hand, most dressed deals in the North were marked at $178, also $2 higher. The National hog base closed off $1.47 compared with the Prior Day settlement ($51-$56, weighted average $54.58). From Friday to Friday, livestock futures scored the following changes: Aug LC up $2.05; Oct LC up $1.53; Aug FC up $0.55; Sep FC up $0.85; Aug LH off $5.15; Oct LH off $0.10. Corn market settled 3 cents higher, capping a very constructive week that was supported by dryer weather through the Corn Belt and stronger action in the wheat market. The stock market closed higher with the Dow up 136 and the Nasdaq better by 9.
Futures closed mostly sharply higher, up 82 to 207. Nearby issues raced ahead of deferred counterparts supported by bull-spreading, technical-buying and greater packer spending in feedlot country. Spot August and October closed at their highest level seen since mid-March. Beef cutouts: Higher on choice and steady on select (choice, $204.75 up $0.95, select $197.09 off $0.01) with moderate to fairly good demand and moderate offerings (53 loads of choice cuts, 29 loads of select cuts, 20 loads of trimmings, 16 loads of coarse grinds).
MONDAY'S CASH CATTLE CALL:
Steady to $2 higher. Monday will be typically slow with cattle buyers focusing on the collection of new showlists. We expect ready numbers to be about steady with this week.
Futures closed sharply higher, up 117 to 167. The feeder trend followed live counterparts higher. The late-week feeder rally was also tied to short-covering and oversold charts. CME cash feeder index: 08/02: $148.92, off $0.21.
Futures closed mostly sharply higher, up 18 to off 47. Except for a 47-point loss by spot August, most lean contracts enjoyed triple-digit gains. Oversold conditions in need of correction seemed to be one positive factor. For another, discounted lean issues no doubt benefited from spillover buying evident throughout the cattle complex. Pork cutout: $71.68 (FOB Plant) off $1.56. CME cash lean 08/01: $68.91, off $1.07 (DTN Projected lean index for 08/02: $67.57, off $1.34.
MONDAY'S CASH HOG CALL:
$1 to $2 lower. Look for packers to stay on the defensive when trade resumes on Monday. Late-summer supplies remain plentiful while pork demand continues to struggle.
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