Thursday Closing Livestock Market Summary

GENERAL COMMENTS

Moderate trade volume surfaced in Kansas and Texas Thursday with most live sales marked at $134, $3.50 to $4 lower than last week. Yet business is the North was little better than scattered, as many feedlot managers dug in with higher asking prices. According to the closing report, the national hog base is .81 lower ($67.00-72.00, weighted average $70.62). The corn market generally faltered by a nickel, pressured by sharply lower action in the bean trade. Wall Street managed to rebound Thursday with the Dow closing 56 points higher and the Nasdaq up 43.

LIVE CATTLE

Live issues opened significantly lower, rallied sharply though midsession, and then closed little better than mixed. In other words, traders experienced yet another session of volatility and wide price swings. Final settlements ranged from 82 higher to 5 lower with nearbys gaining on deferreds. Although spot June once again uncovered decent buying interest under 122, it still closed nearly 100 points below its high of the day. Beef cut-outs: lower, off .27 (select, $221.66) to .96 (select, $247.21) with light to moderate demand and offerings (42 loads of choice cuts, 41 loads of select cuts, 13 loads of trimmings, 18 loads of coarse grinds).

FRIDAY'S CASH CATTLE CALL:

Steady with Thursday's decline. While it looks like the South may be done for the week, light to moderate business is expected to develop sometime Friday.

FEEDER CATTLE

With the exception of the modest, 30-point gain by spot May (set to expire one week from Thursday), the feeder complex advanced by triple digits (i.e., up 102 to 162). Buying seemed tied to short-covering and defensive action in the corn market. CME cash feeder index: 05/17: 142.05, off .07. 

LEAN HOGS

June and July continued to slowly edge toward 80 and new contract highs, tentatively supported by bull spreading and generally constructive fundamentals. Overall, prices settled on a mixed basis, up 27 to off 45. Carcass value closed some lower as belly and rib strength was checked by softer demand for fresh cuts. Pork cut-out: $81.85, up .73. CME cash lean index for 05/16: 74.14, up 1.13 (DTN Projected lean index for 05/17: 74.82, up .78). 

FRIDAY'S CASH HOG CALL

Steady. Look for late-week business to open in the morning with near steady bids.