Monday Closing Livestock Market Update

GENERAL COMMENTS

Activity in feedlot country was limited to the distribution of new showlists. Generally speaking, ready numbers appear smaller than last week with only Nebraska offering more. According to the closing report, the national hog base is .33 lower ($66.00-71.50, weighted average $70.51). Corn futures closed several cents higher, somewhat supported by weekend rains and delayed planting concerns. The stock market closed higher with the Dow up 90 points and the Nasdaq positive by 49.

LIVE CATTLE

Live contracts launched the week with a decent wave of buying energy, enough to push prices 47 to 172 higher. August through December managed to close impressively above moving average highs. The only fly in the bullish ointment was the inability of spot June to hold the upper end of its trading range. Indeed, the lead month settled 120 points below its session high. Beef cut-outs: higher, up .74 (choice, $247.88) to $1.41 (select, $222.83) with moderate to fairly good demand and light to moderate offerings (44 loads of choice cuts, 31 loads of select cuts, 17 loads of trimmings, 13 loads of coarse grinds).

TUESDAY'S CASH CATTLE CALL:

Steady to $2 lower. Chances are bids and asking prices will remain poorly defined on Tuesday with serious business delayed until Wednesday or Thursday.

FEEDER CATTLE

With the exception of spot May (up 90 points), feeder futures were dominated by triple-digit gains. From August back, most contracts settled above moving average highs for the first time since May 4. On an estimated run of 6,000 head (down from 8,599 last week and 9,795 in 2016), Oklahoma City sold steer and heifer feeders $2-5 higher. CME cash feeder index: 05/19: 142.88, off .98.

LEAN HOGS

Action here was rather lackluster with most of the volume made up of spreaders trading at cross-purpose. Contracts closed nearly mixed at the conclusion of a technically insignificant session (i.e., up 45 to off 15). Carcass value jumped significantly higher with all primals contributing (especially fresh cuts and bellies) except picnics. Pork cut-out: $88.71, up $1.45. CME cash lean index for 05/18: 75.55, up .63 (DTN Projected lean index for 05/19: 75.89, up .34). 

TUESDAY'S CASH HOG CALL

Steady to $1 higher. Hog buyers should return to business in the morning with steady/firm prices.