Monday Closing Livestock Market Update

Closing Comments 

Cattle buyers limited early week efforts to the collection of new showlists. Generally speaking, the initial April offering looks larger than last week with only Colorado yards showing a few more ready steers and heifers. According to the closing report, the national hog base is $1.09 lower ($56.00-$62.00, weighted average $60.31). Corn futures closed 3-4 cents higher, supported by follow-through buying tied to Friday's bullish reversal and smaller-than-expected planting intentions. The stock market closed lower with the Dow off 13 points and the Nasdaq down by 17.

LIVE CATTLE

Live cattle futures settled with uneven prices (i.e., up 27 to off 52). April and June seemed to attract the most selling interest thanks to bear-spreading interest, long liquidation, and signs of struggling beef demand. Beef cut-outs: sharply 9 lower, off $0.69 (choice, $213.43) to $2.65 (select, $201.35) with light to moderate demand and moderate offerings (47 loads of choice cuts, 34 loads of select cuts, 7 loads of trimmings, 15 loads of coarse grinds).

TUESDAY'S CASH CATTLE CALL:

Steady to $2 lower. Tuesday is expected to be typically quiet with both bids and asking prices poorly defined.

FEEDER CATTLE

At the conclusion of a choppy session, feeder futures closed with mixed prices, ranging from 50 higher to 90 lower. Front-end issues lost ground to the far deferreds. On an estimated run of 6,500 head (near steady with both last week and last year), Oklahoma City sold most feeder steers and heifers $1-$3 lower. However, steers weighing 900-1000 pounds were marked $2 higher. CME cash feeder index: 03/31: $133.33 up $0.56.

LEAN HOGS

Lean futures closed substantially lower to kick off the week with summer issues catching most of the heat. Prices settled generally 32 to 130 lower with June through August losing ground to both nearbys and far deferreds. In dipping back toward the lows of last week, the trade seems to be expressing worry over whether or not pork demand will be adequate enough to handle the production tonnage potential implied by the March 1 inventory. The carcass value closed moderately higher with all primals appreciating except the picnic and ham. Pork cut-out: $75.89, up $0.49. CME cash lean index for 03/30: $68.30, off $0.56 (DTN Projected lean index for 03/31: $67.59, off $0.71).

TUESDAY'S CASH HOG CALL

Steady to $1 lower. Hog buyers seem likely to remain on the defensive in the morning, generally armed with bids steady to a buck lower.