Wednesday Closing Livestock Market Summary

GENERAL COMMENTS

Light-to-moderate trade volume surfaced in the southern tier of cattle feeding country with live sales marked at $138, generally $7 lower than last week's market. Business in the North was limited to a few scattered sales of $224 dressed and $138 live. According to the closing report, the national hog base is $2.37 higher ($63.00-$71.50, weighted average $69.36). Corn futures jumped 6-7 cents higher, supported by smaller-than-expected world ending stocks estimated by USDA. The stock market closed mixed with the Dow off 32 points and the Nasdaq up 8.

LIVE CATTLE

Live contracts settled on a mixed basis with prices ranging from 22 higher to 77 lower. Spot June continue to catch most of the pressure thanks to long liquidation and rolling. June did managed to close nearly 200 points above its session low, rekindling buying interest near 62% retrace of the market's steep rally over the last two weeks. Beef cut-outs: sharply higher, up $1.59 (select, $224.62) to $2.42 (choice, $244.58) with moderate to good demand and light to moderate offerings (49 loads of choice cuts, 25 loads of select cuts, 8 loads of trimmings, 40 loads of coarse grinds).

THURSDAY'S CASH CATTLE CALL:

Lower than last week. Packer inquiry in the North could improve on Thursday, though business could be delayed until Friday. We suspect Southern biz is essentially done for the week.

FEEDER CATTLE

If the live market closed with moderately uneven prices, the final scramble in the feeder trade was considerably wilder. Settlement ranged from 120 higher to 322 points lower with summer and fall issues losing ground both to spot May and the far deferreds. CME cash feeder index: 05/09: $147.66, off $0.07.

LEAN HOGS

Soon-to-expire spot May closed 75 points higher, goosed by the advancing wave of the cash index. The rest of the complex settled narrowly mixed in light trade volume (i.e., up 17 to off 37). The carcass value closed neared steady with belly strength countering picnic weakness. Pork cut-out: $81.12, up $0.10. CME cash lean index for 05/08: $65.98, up $1.19 (DTN Projected lean index for 05/09: $67.64, up $1.66). 

THURSDAY'S CASH HOG CALL

$1-$2 higher. Hog buyers are likely to remain fairly aggressive when cash business resumes in the morning.