Monday Closing Livestock Market Update

Closing Comments 

Activity in cattle feeding country was limited to the distribution of new showlists. Ready numbers are mixed, larger in the South and smaller in the North. Yet, overall, the fed supply situation looks somewhat larger. According to the closing report, the national hog base is $0.42 higher ($60.00-$67.00, weighted average $65.86). Corn futures settled 4 cents lower, pressured by long liquidation and decent growing conditions in Brazil. The stock market closed narrowly mixed with the Dow off 8 points and the Nasdaq virtually unchanged.

LIVE CATTLE

Checked by overhead resistance and fears that red-hot beef demand may be on the brink of running out of gas, spot April closed 42 points lower. Yet the rest of the live complex seemed fairly well supported, closing up 12 to 62. There was some talk concerning the international scandal concerned tainted beef from Brazil. The EU and China indicated Monday that they would temporarily suspend Brazilian imports until the matter could be full investigated. Some floated ideas that this situation could be good news for U.S. exports. Maybe. But most traders at the CME seemed to take a wait-and-see attitude. Beef cut-outs: mixed, up $0.33 (choice, $223.76) to off $0.51 (select, $213.97) with light-to-moderate demand and light offerings (44 loads of choice cuts, 24 loads of select cuts, 5 loads of trimmings, 22 loads of coarse grinds).

TUESDAY'S CASH CATTLE CALL:

Steady to $2 higher. Tuesday is expected to remain generally quiet with both bids and asking prices poorly defined.

FEEDER CATTLE

Feeder futures extended the impressive late-winter rally Monday by closing another 15 to 90 points higher. The market was supported by commercial buying and technical considerations. On an estimated run of 6,700 head (near even with last week but below 8,800 counted in 2016), Oklahoma City sold feeder steers and heifers steady to $3 higher. CME cash feeder index: 03/17: $129.70, up $0.43.

LEAN HOGS

Lean hog futures settled on a mixed basis, up 32 to off 40. Sensing a lackluster tone to fundamentals, spot April slumped below its moving average low for the first time since March 3. The carcass value closed modestly lower as softness in loin, rib, and ham primals overshadowed better demand for butts, picnics, and bellies. Pork cut-out: $81.46, off $0.14. CME cash lean index for 03/16: $71.74, off $0.10 (DTN Projected lean index for 03/17: $71.61, off $0.13).

TUESDAY'S CASH HOG CALL

Steady. Hog buyers are likely to return to work on Tuesday with basically steady bids.