Monday Closing Livestock Market Summary

Closing Comments

The cash cattle trade was typically slow with early week activity limited to the collection of new showlists by packers. Ready numbers are generally larger than last week, especially in Texas. According to the closing report, the national hog base is $0.99 lower ($54.00-$58.50, weighted average $57.19). Corn futures surged 6-7 cents higher. Corn futures surged 6-7 cents higher, supported by commercial buying and heavy South American rains. The stock market closed marginally higher with the Dow up 1 and the Nasdaq better by 3.

LIVE CATTLE

Live futures settled 35 to 105 points higher, supported by follow-through buying and evidence that Friday's cash held up better than many bears feared. June closed at its highest point since March 24. Beef cut-outs: mixed, up $0.24 (choice, $207.46) to off $0.89 (select, $196.60) with light-to-moderate demand and moderate offerings (59 loads of choice cuts, 23 loads of select cuts, 9 loads of trimmings, 10 loads of coarse grinds).

TUESDAY'S CASH CATTLE CALL:

Steady to $2 lower. Tuesday is likely to play typically quiet with bids and asking prices remaining poorly defined until midweek or later.

FEEDER CATTLE

Feeder contracts really got rocked with bullish fever Monday, closing 150 to 215 higher. Virtually all issues set new contract highs. Beside spillover support from the live trade, feeder seemed to catch fire thanks to aggressive commercial buying perhaps tied to speculation that China would soon reopen its doors to U.S. beef exports. On an estimated run of 8,350 head (down from 6,334 last week and 7,947 in 2016), Oklahoma City sold feeder steers and heifers $3-$5 higher. CME cash feeder index: 04/07: $133.31 up $0.35.

LEAN HOGS

Lean contracts generally closed 35 to 152 points thanks in part to ideas that the strength seen in pork export demand seen in the first quarter can be rekindled in the second half of 2017. Note spot April, set to expire at the end of the week, closed unchanged as it prepares to align with the eroding cash index. Carcass value jumped significantly higher to start the week, jazzed by better demand for bellies, ribs and hams. Pork cut-out: $76.70, up $1.42. CME cash lean index for 04/06: $65.73, off $0.42 (DTN Projected lean index for 04/07: $65.12, off $0.61).

TUESDAY'S CASH HOG CALL

Steady to $1 lower. Look for cash hog buyers to resume work in the morning with bids steady to $1 lower.