Wednesday Closing Livestock Market Summary

GENERAL COMMENTS

The Fed Cattle Exchange Auction report Wednesday listed a total of 2,648 head, but just half of the cattle actually sold. The weighted averages are as listed: 1-9 day delivery: 1,086 head, $132.54; 1-17 day delivery 144 head, $132.50; 10-17 day delivery 133 head, $132.50. Generally speaking, these price look $2-$3 lower than last week. Beyond this, a light-to-moderate trade surfaced in parts of the South at $132, roughly $2 lower than area weighted averages last week, and in parts of the North at mostly $208 dressed, about $5 lower. According to the closing report, the national hog base is $0.50 lower ($66.00-$72.00, weighted average $70.71). The corn trade closed generally 2 cents higher thanks to late buying at the conclusion of a lackluster session. The stock market closed higher with the Dow up 74 points and the Nasdaq better by 24.

LIVE CATTLE

Live cattle futures have been fighting a rearguard action ever since the trade failed to hold the high ground on Monday. The price slide continued Wednesday thanks to long liquidation and cash uncertainty. Contracts settled off 35 to 140. Positively, most issues managed to bounce 100 points or more off session lows. Additionally, spot June successfully closed above longer term support at 122. Beef cut-outs: mixed, up $0.34 (choice, $246.08) to off $1.57 (select, $219.60) with light to moderate demand and offerings (68 loads of choice cuts, 48 loads of select cuts, six loads of trimmings, 22 loads of coarse grinds).

THURSDAY'S CASH CATTLE CALL:

Steady/weak with Wednesday. Depending upon final trade volume totals generated on Wednesday, cattle buyers may need to own more cattle before breaking for the Memorial Day weekend.

FEEDER CATTLE

For the most part, feeder cattle futures closed sharply lower, pressured by long liquidation and defensiveness in live futures. Spot May held relatively stable, supported more by the cash index. CME cash feeder index: 05/23: $143.40, up $0.13.

LEAN HOGS

Follow-through buying and impressive product demand popped lean contracts higher through midsession, but the market clearly ran out of gas later in the day. Settlements were generally 5 to 57 lower with only spot June able to salvage a minimal amount of black ink. The late selling was no doubt tied to long liquidation and commercial hedging. Carcass value closed moderately lower tied to lower sales of picnics, ribs, hams and bellies. Pork cut-out: $89.86, off $0.44. CME cash lean index for 05/22: $75.94, up $0.05 (DTN Projected lean index for 05/23: $76.07, up $1.13). 

THURSDAY'S CASH HOG CALL

Steady. Look for opening hog bids to be near steady when the cash trade resumes in the morning.