Thursday Closing Livestock Market Summary

Closing Comments 

Light business was reported in parts of the northern tier of cattle feeding country with several regionals paying up to $215 for better cattle (more than $7 higher than last week's weighted average basis Nebraska). But generally speaking, the cash market remained very quiet as feedlot managers confidently sat on higher asking prices (i.e., $132-$134 in the South and $217-$218 in the North). According to the closing report, the national hog base is $0.44 lower ($60.00-66.75, weighted average $65.06). Corn futures closed several cents lower with spot finishing at a new low for 2017. The stock settled mostly lower with the Dow off 4 points and the Nasdaq down by 5.

LIVE CATTLE

Maybe Wednesday's price explosion was simply too tough an act to follow. At any rate, profit-taking and the slow development of feedlot cash news caused the board to settle 70 to 105 lower. Beef cut-outs: lower, off $0.03 (select, $215.77) to $0.72 (choice, $222.28) with light-to-moderate demand and moderate-to-heavy offerings (107 loads of choice cuts, 42 loads of select cuts, 3 loads of trimmings, 26 loads of coarse grinds).

FRIDAY'S CASH CATTLE CALL:

$2 to $4 higher. Short-bought packers should need to buy at least moderate numbers sometime before adjourning for the weekend.

FEEDER CATTLE

Feeder futures closed mostly 40 to 125 points lower. Selling surfaced mostly in the form of profit-taking and pre-cash long liquidations. CME cash feeder index: 03/22: $131.58, up $1.56.

LEAN HOGS

Many market watchers focusing here were forced to report to the emergency room with bad cases of whiplash. After struggling with significant losses for most of the session, contracts suddenly through pricing momentum in reversal and close sharply higher. The first five contracts finished 120 to 185 higher. Some of the late buying energy may have been tied to the Brazilian meat scandal and speculation that world pork prices could be pushed sharply higher as old Brazilian beef and chicken customers looked for alternatives. Spot April successfully nosed over its 40-day moving average. Summer issues seemed to uncover significant buying interest under 100-day moving averages (though overhead resistance remains around 40-day moving averages). Carcass value imploded further Thursday, especially pressured but the butt (off $7.48) and belly (off $4.71) primals. Pork cut-out: $77.49, off $1.55. CME cash lean index for 03/21: $71.41, off $0.07 (DTN Projected lean index for 03/22: $71.29, off $0.12).

FRIDAY'S CASH HOG CALL

Steady to $1 lower. Look for cash bids to open on the defensive in the morning with buyers eyeing larger live supplies on one hand and struggling pork demand on the other.