Friday Closing Livestock Market Summary

GENERAL COMMENTS

The cash cattle trade was very quiet Friday with buyers and sellers apparently content with the business conducted on Wednesday and Thursday. The National hog base closed up $0.17 compared with the Prior Day settlement ($66.00-$71.00, weighted average $69.73). From Friday-to-Friday livestock futures scored the following changes: Jun LC Off $3.13; Aug LC up $0.60; May FC Up $0.78; Aug FC Off $1.60; Jun LH Up $1.63; Jul LH Up $1.78. Corn futures closed one to two cents higher in light trade volume. The stock market closed mixed with the Dow off 22 points and the NASDAQ up 5.

LIVE CATTLE

Futures closed significantly higher, up 125-260. Contracts gapped higher on the opening thanks to news of the long-awaited agreement between the U.S. and China. Although there are many details to be worked out, China has agreed to accept under certain conditions U.S. product no later than July 16. Note that spot June managed to close the week well above 50% retracement of the steep rally seen between late April and early May. Beef cut-outs: Higher on Choice and lower on Select (Choice, $247.69 up $0.83, Select $225.51 off $1.15) on light to moderate demand and light offerings (30 loads of choice cuts, 23 loads of select cuts, 06 loads of trimmings, 12 loads of coarse grinds).

MONDAY'S CASH CATTLE CALL:

Steady. Monday's activity will be limited to the distribution of new showlists. Assuming that futures will be supported by carry-over buying next week, feedlot managers will probably be pricing ready cattle several dollars higher.

 

FEEDER CATTLE

Futures closed sharply higher, up 217-450. Note that August through November managed to close up the full 450-point limit. Like their live counterparts, feeders were inspired by news of Chinese beef potential and longer-term cattle/beef demand in general. CME cash feeder index: 05/11: $143.48, off $2.02.

LEAN HOGS

Futures closed mostly higher, up 152 to off 12. Summer futures gained on the far deferreds thanks to late week bull-spreading and technical buying. Note that spot May expired at 71.90, up 37. New-spot June will take the point on Monday nearly 700-points premium to the cash index. Pork cut-out: $83.29 (FOB Plant) up $1.44. CME cash lean 05/10: $69.12, up $1.48 (DTN Projected lean index for 05/11: $70.63, up $1.51).

MONDAY'S CASH HOG CALL

Steady to $1.00 higher. Look for cash hog buyers to resume business on Monday with steady/firm bids, anticipating both tightening supplies and improving product demand.