Wednesday Closing Livestock Market Summary

GENERAL COMMENTS

Cattle buyers once again turned very aggressive in feedlot country Wednesday, spending whatever it took to cover shor-term slaughter needs. ive sales in the South were marked at $145-146, $8-9 higher than last week. Dressed deals in the North were mostly done at $230, $12 to $13 higher than last week's weighted average basis Nebraska. According to the closing report, the national hog base is $2.97 higher ($52.00-63.75, weighted average $61.47). Corn futures settled several cents higher, modestly supported by forecasts for better planting conditions. The stock market closed mixed with the Dow up 8 points and the Nasdaq off 22.

LIVE CATTLE

Live futures exploded higher Wednesday thanks to a combination of aggressive packer spending and technical buying. Prices settled 40 to 300 points higher with both June and August advancing as far as exchange rules would allow (and both setting new contract highs in the process). Beef cut-outs: sharply higher, up $1.61 (select, $214.89) to $3.14 (choice, $232.59) with moderate to fairly good demand and light to moderate offerings (57 loads of choice cuts, 38 loads of select cuts, 7 loads of trimmings, 25 loads of coarse grinds).

THURSDAY'S CASH CATTLE CALL:

Steady/firm with midweek advance. Look for light to moderate trading Thursday with prices near the top of Wednesday's full advance.

FEEDER CATTLE

Feeders surged 115 to 450 higher, following the bullish lead of live futures. Nearly all months managed to set new contract highs. CME cash feeder index: 05/02: 142.98, up .22.

LEAN HOGS

Though a bit tame by cattle standards, lean futures scored impressive gains nonetheless. Prices settled generally 20 to 140 higher with summer months gaining on deferreds. June closed below its 100-day moving average (76.12). If we can move above that by the end of the week, it would trigger a new wave of short-covering and spec buying. Carcass value closed moderately higher, supported by all major primals except the ham. Pork cut-out: $75.89, up .48. CME cash lean index for 05/01: 60.29, up .41 (DTN Projected lean index for 05/02: 61.14, up .85). 

THURSDAY'S CASH HOG CALL

Steady to $1 higher. With the cash trade on a bit of a roll this week, look for packer bids to be on the firm side again Thursday morning.