Monday Closing Livestock Market Update

GENERAL COMMENTS

Activity in cattle feeding country was limited to the distribution of new showlists. Ready numbers appear to be larger in the North and smaller in the South. Generally speaking, the offering appears to be about steady with last week. According to the closing report, the national hog base is .82 higher ($60.00-67.00, weighted average $65.06). Corn futures settled 4-5 cents lower, pressured by expected planting progress tied to warmer temps. The stock market closed modestly higher with the Dow up by 5 points and the Nasdaq positive by 1.

LIVE CATTLE

Except for a 52-point loss in spot June, live contracts staged a dramatic recovery from Friday's price collapse, closing 187 to 260 higher. Monday's bullish action underscored ideas that Friday's plunge was tied more to technically oversold charts than a serious shift in fundamentals. The weekly five-area steer average turned out to be $144.60, nearly $17 above where spot June settled today. Beef cut-outs: sharply higher, up $2.57 (choice, $241.44) to $3.32 (select, $222.89) with moderate demand and light offerings (35 loads of choice cuts, 25 loads of select cuts, 8 loads of trimmings, 11 loads of coarse grinds).

TUESDAY'S CASH CATTLE CALL:

Steady to $2 higher. Bids and asking prices are likely to remain poorly defined until at least Wednesday.

FEEDER CATTLE

Feeder issues rolled sharply higher, rebounding from Friday's price implosion faster than you could say "outstanding feedlot profits." Taking advantage of expanded limits, the feeder board closed 165 to 577 higher. On an estimated run of 13,000 head (up from 5,991 last week and 7,686 a year ago), Oklahoma City sold feeder steers steady to $3 higher. Their heifer mates were called about steady. CME cash feeder index: 05/05: 148.08, up $2.33.

LEAN HOGS

Hog futures closed mostly higher with nearbys generally gaining on deferreds. Practical spot June led Monday's charge, thanks to bull-spreading interest and more news of stronger cash markets. The carcass value jumped higher to start the week with all primals contributing except the picnic. Pork cut-out: $78.99, up .21. CME cash lean index for 05/04: 63.55, up 1.31 (DTN Projected lean index for 05/05: 64.79, up 1.24). 

TUESDAY'S CASH HOG CALL

Steady to $1 higher. Look for cash hog buyers to resume procurement chores in the morning with another round of firm bids.