Tuesday Closing Livestock Market Summary

Closing Comments

Cattle feeding country remained dead quiet Tuesday with both bids and asking prices few and far between. A small handful of showlists in parts of the South were priced around $132-$133. According to the closing report, the national hog base is $0.39 lower ($58.00-$63.75, weighted average $63.31). The corn market closed generally 2 cents higher, cautiously supported by noncommercial buying and short-covering. Encouraged by stronger consumer confidence, the Dow closed 150 points higher and the Nasdaq advanced by 34.

LIVE CATTLE

Spot April sagged further on the close, adding another 30 points to Monday's sell-off. Yet the rest of the market managed to stage a moderate recovery (i.e., up 15 to 52) with the help of light short-covering and recent feedlot premiums. Beef cut-outs: moderately lower, off $0.34 (choice, $219.57) to $0.60 (select, $213.02) with light to moderate demand and offerings (53 loads of choice cuts, 24 loads of select cuts, 13 loads of trimmings, 31 loads of coarse grinds).

WEDESDAY'S CASH CATTLE CALL:

Steady to $2 higher. Cattle buying interest could start to take shape at midweek, but significant trade volume is likely to be delayed until Thursday or Friday.

FEEDER CATTLE

Closing feeder futures ranged from 62 points higher to 15 lower. Generally speaking, the trade closed moderately higher in very light trade volume. CME cash feeder index: 03/27: $133.26 up $0.17.

LEAN HOGS

Though the opening hour saw a short spasm of short-covering and higher prices, selling interest quickly resumed ties to worries over large supplies and inadequate pork demand. Contracts settled 55 to 107 lower with spot April walking away from its poorest landing since Dec. 6. The carcass value was hit hard again Tuesday with the belly and ham primals losing $7.70 and $1.85, respectively. Pork cut-out: $77.61, off $1.51. CME cash lean index for 03/24: $70.24, off $0.67 (DTN Projected lean index for 03/27: $69.78, off $0.4667).

WEDESDAY'S CASH HOG CALL

Steady to $1 lower. Look for hog buyers to remain on the defensive at midweek, bidding generally lower in the face of big supplies and softening product demand.