Thursday Closing Livestock Market Summary

GENERAL COMMENTS

The cash cattle trade was dead quiet Thursday, following Wednesday's surge forward. Business seemed essentially done for the week. According to the closing report, the national hog base is $2.28 higher ($55.00-66.00, weighted average $63.79). Corn futures settled generally 8 cents lower, checked by forecasts of better planting weather ahead. Equities closed on a mixed basis with the Dow off 6 points and the Nasdaq up 2.

LIVE CATTLE

When trade first opened Thursday, futures rocketed higher, chasing the amazing vapor trail of Wednesday's surging cash market. But, after a session of extreme choppiness and volatility, only June and August held in the green through the close. Final settlements ranged from 125 higher to 270 lower. Beef cut-outs: sharply higher, up $1.95 (select, $216.84) to $2.99 (choice, $235.58) with moderate to good demand and moderate offerings (52 loads of choice cuts, 40 loads of select cuts, 9 loads of trimmings, 20 loads of coarse grinds).

FRIDAY'S CASH CATTLE CALL:

Steady/firm with midweek advance. While some scattered sales of clean-up action is possible on Friday, we suspect that most cash traders have already called it a happy week.

FEEDER CATTLE

Bearish reversals don't come much nastier. Feeders open sharply higher, but suddenly someone screamed "fire" in the crowded theater. When the smoke cleared, most issues had settled 215 to 502 points lower than Wednesday and as much as 600-850 below session highs. The sell-off was tripped in part by profit-taking and an aggressive pull-back in deferred live issues. CME cash feeder index: 05/03: 145.39, up $2.41.

LEAN HOGS

Lean hog contracts closed on a mixed basis, up 105 to off 22. Summer contracts continued to gain on their deferred counterparts. Evidence of a strengthening cash market is clearly working to fund confidence in a seasonal rally through midsummer. The carcass value closed modestly higher thanks primarily to better demand for processing items. Pork cut-out: $76.52, up .21. CME cash lean index for 05/02: 61.14, up .85 (DTN Projected lean index for 05/03: 62.24, up 1.10). 

FRIDAY'S CASH HOG CALL

Steady to $1 higher. Look for opening bids in the morning to strengthen further as market hog supplies continue to slowly tighten.