The cash cattle trade turned fairly active at midweek with short-bought packers rushing to cover significant beef orders booked over the next 30-45 days. Dressed sales in the North were marked at mostly $212.00, nearly $7.00 higher than last week's weighted average basis Nebraska. In the South, packer spending pushed live sales from $130.00-$132.00, $3.00-$5.00 higher than last week. The National hog base closed off $0.71 compared with the Prior Day settlement ($51.00-$56.50, weighted average $54.54). Corn futures closed basically unchanged. The market opened higher on ideas of early planting delays. But prospects for large South American production have quickly countered. The stock market closed mostly lower with the Dow off 118 and the Nasdaq up 15.
LIVE CATTLE
Futures closed higher up 30-115. The live trade was extremely choppy through the day with prices swinging from significantly higher to sharply lower. Yet buying interest resurfaced around noon thanks in part to higher sales reported by the FCE. Additionally, Northern buying interest began to improve, promoting greater confidence at the CME. Beef cut-outs: lower on choice and steady on select (choice, $215.17 off $0.82, select $202.00 off $0.20) on moderate demand and light offers (54 loads of choice cuts, 31 loads of select cuts, 15 loads of trimmings, 21 loads of coarse grinds).
THURSDAY'S CASH CATTLE CALL:
Firm with Wednesday's top. Light to moderate trade volume may be possible through the end of the week, but much depends upon the level of business that actually developed at midweek. Needless to say, bullish-minded feedlots will be pricing the balance of showlists even higher (e.g. $134.00-$135.00 in the South).
FEEDER CATTLE
Futures closed higher, steady to up 77. Feeder cattle basically followed the same choppy pattern seen in the live market. Feeders continue to be supported by good commercial buying interest and outstanding feedlot profits. CME cash feeder index: 04/18: $136.64, up $0.03.
LEAN HOGS
Futures closed sharply lower off 12 to 160. Triple-digit losses dominated spring and summer contracts. Spot June closed below 70 for the first time since mid-October. It would appear that hog bulls are beginning to lose their patients in waiting for supply and demand fundamentals. Pork cut-out: $74.79 (FOB Plant) off $0.69. CME cash lean 04/17: $62.12, off $0.47 (DTN Projected lean index for 04/18: $61.89, off $0.23).
THURSDAY'S CASH HOG CALL
Steady to $1.00 lower. Hog buyers are expected to remain on the defensive in the morning, mindful of plentiful supplies and struggling carcass value.
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