Monday Closing Livestock Market Update

Closing Comments 

Activity in feedlot country was limited to the distribution of new showlists. Ready numbers appears to be mostly smaller, especially in the South. Though asking prices were poorly defined, few doubt that producers are thinking at least several dollars higher. According to the closing report, the national hog base is 69 lower ($58.00-64.50, weighted average $63.68). The corn market settled fractionally mixed in light volume. Equities closed mixed with the Dow off 45 points and the Nasdaq up 11.

LIVE CATTLE

The live futures market closed significantly lower, pressured by long liquidation, worry that bulls have already played their best beef demand cards, and the decision by China to once again accept Brazilian meat shipments. Beef cut-outs: sharply lower, off $1.71 (choice, $219.91) to 41.93 (select, $213.62) with light-to-moderate demand and offerings (43 loads of choice cuts, 12 loads of select cuts, 5 loads of trimmings, 16 loads of coarse grinds).

TUESDAY'S CASH CATTLE CALL:

Steady to $2 higher. Look for a typically quiet Tuesday in cattle country with both buyers and sellers pretty much sitting on their hands.

FEEDER CATTLE

Spooked by the quick resolution of the Brazilian meat scandal as well, feeder issues tanked by 122 to 247 points. Note the board has now retreated back below the cash index. On an estimated run of 6,200 head (near even with the previous week but up from 4,147 counted last year), Oklahoma City sold feeder steers and heifers $2-$5 higher. CME cash feeder index: 03/24: $133.09 up $0.63.

LEAN HOGS

Lean contracts fell sharply lower with most contracts off 105 to 222 on the close. The early week tumble seemed to be tied to general supply worries and technical selling. Most months fell to their lowest price levels since late 2016. Carcass value closed moderately higher with stronger belly, butt, and rib sales overshadowing weakness in hams, loins, and picnics. Pork cut-out: $79.12, up $0.64. CME cash lean index for 03/23: $70.91, off $0.38 (DTN Projected lean index for 03/24: $70.24, off $0.67.

TUESDAY'S CASH HOG CALL

Steady to $1 lower. Hog buyers are likely to remain cautious in the morning as early spring live supplies remain plentiful.