Thursday Closing Livestock Market Summary

GENERAL COMMENTS

Moderate cash business developed in the North Thursday with live deals marked at $137-$138 ($7-$8 lower basis Nebraska) and dressed sales ranging from $217-$221 ($9-13 lower basis Nebraska). According to the closing report, the national hog base is $0.22 higher ($65.00-$71.00, weighted average $69.64). Corn futures settled 4-5 cents lower, checked by poor export sales and forecasts for better planting weather. The stock market closed lower with the Dow off 23 points and the Nasdaq down by 13.

LIVE CATTLE

It was one of those wild, price-swinging days that could have been worse. At the close, most live contracts were only moderately lower, off 27 to 82. Triple-digit losses were minimized late in the session when short-covering and cash premiums helped stabilize the board. For example, spot June once again found buying interest under chart support at 122 (closing at 123.92). Note that both June and August rambled back and forth with 400-point trading ranges. Beef cut-outs: sharply higher, up $2.04 (select, $226.66) to $2.28 (choice, $246.06) with moderate demand and light to moderate offerings (61 loads of choice cuts, 20 loads of select cuts, 12 loads of trimmings, 16 loads of coarse grinds).

FRIDAY'S CASH CATTLE CALL:

Steady with lower sales seen on Wednesday and Thursday. While clean-up activity is possible here and there, cash business may be essentially done for the week.

FEEDER CATTLE

Though trading in a wide range through the day like their live counterparts, feeders spent most of the trading time in deep red ink. At the close, contracts settled off 150 to 212, pressured by long liquidation and profit taking. CME cash feeder index: 05/10: $145.50, off $2.16.

LEAN HOGS

For the most part, lean issues closed moderately lower (i.e., off 15 to 70) with nearbys holding up better than deferreds. Given the impressive way the cash index has been rolling higher this week, part of the caution here may have been tied to spillover selling from the cattle complex. Set to expire Friday, spot May finished 47 higher Carcass value closed higher with all primals contributing accept the loin and ham. Pork cut-out: $81.85, up $0.73. CME cash lean index for 05/09: $67.64, up $1.66 (DTN Projected lean index for 05/10: $69.12, up $1.48). 

FRIDAY'S CASH HOG CALL

Steady to $1 higher. Look for hog buyers to open late-week procurement with steady/firm bids. 05/09: $67.64, up $1.66.