The cash cattle trade remained untested Wednesday with just a few odds and ends reported across the feeding area. With a showlist totaling 5,125 head, the FCE sold just 120 steers at $126 basis Nebraska. According to the closing report, the national hog base is $0.33 lower ($53.00-$57.75, weighted average $56.52). Generally speaking, corn futures finished 2 cents higher, supported by light short-covering and a general lack of selling interest. The stock market closed lower with the Dow off 59 points and the Nasdaq down by 30.
LIVE CATTLE
Spurred by follow-through buying, encouraging technical readings, and positive cash prospects, live issues settled 32 to 95 points higher. Some were cheered by signs of better cooperation between the U.S. and China, and what it could mean in terms of the reopening of beef exports to China sometime this summer. New contract highs were set in June through December. Beef cut-outs: mixed, up $0.76 (choice, $210.13) to off $0.96 (select, $198.64) with light to moderate demand and moderate offerings (70 loads of choice cuts, 48 loads of select cuts, 6 loads of trimmings, 24 loads of coarse grinds).
THURSDAY'S CASH CATTLE CALL:
Steady to $2 higher. Assuming that most buyers and sellers would like to wrap up cash business before the long holiday weekend, we look for moderate trade volume to develop in most areas sometime Thursday.
FEEDER CATTLE
Though bullish momentum slowed down Wednesday, feeder contracts still closed 17 to 77 higher, notching another round of new contract highs in the process. Given the fact some months settled nearly 200 points below early session high, it was clear that the early market surge understandably attracted some profit-taking interest. CME cash feeder index: 04/11: $133.85 up $0.21.
LEAN HOGS
Lean issues closed 42 to 172 points lower with May through July losing ground to spot April and the far deferreds. Selling interest seemed tied to profit-taking and pork demand worries. Summer contracts may be in the process of building a market bottom. In that regard, it will be important for June to keep digging in above last week's low of $71.72. The carcass value closed moderately lower, checked by all primals quoted lower except the belly. Pork cut-out: $74.73, off $0.44. CME cash lean index for 04/10: $64.65, off $0.47 (DTN Projected lean index for 04/11: $64.15, off $0.49).
THURSDAY'S CASH HOG CALL
Steady to $1 lower. Look for hog buyers to stay on the defensive Thursday, perhaps made easier by plentiful numbers and the pending three-day break ahead.
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