Monday Closing Livestock Market Update

GENERAL COMMENTS

Cattle country was typically quiet with activity limited to the distribution of new showlists. The new offering appears to be generally larger than last week, especially in the South. According to the closing report, the national hog base is .62 higher ($71.00-79.50, weighted average $77.22). The corn market got hit hard, losing a dime or more thanks to Monday's wetter seven-day forecast. The stock market closed lower with the Dow off 36 points and the Nasdaq down by 32. `

LIVE CATTLE

Live contracts closed sharply lower, off 132 to 290 with nearbys losing ground to deferreds. Ideas that the best of seasonal beef demand may be ready to pass in the rear view mirror seemed to unleash a large wave of long liquidation. Note that spot June came within 83 points of filling the bullish gap created June 2. A dip to 127.42 in the morning would complete that task, and it will be interesting to see if bulls can rekindle the fire after that. Beef cut-outs: sharply higher, up $1.31 (choice, $252.52) to $1.48 (select, $221.77) with moderate to fairly good demand and moderate offerings (61 loads of choice cuts, 30 loads of select cuts, 12 loads of trimmings, 18 loads of coarse grinds).

TUESDAY'S CASH CATTLE CALL:

Steady. Look for a typically quiet Tuesday with both bids and asking prices remaining poorly defined.

FEEDER CATTLE

Disregarding the theoretical support of the breaking corn trade, feeder issues slumped right along with their live counterparts. Spot August closed below its 8-day moving average low for the first time since May 26. The August chart suggests support near the 40-day moving average around 119.70. On an estimated run of 7,500 head (down from 9,269 last week and 9,942 last year), Oklahoma City sold feeder steers $2 to $5 lower. Heifer mates were marked $1-3 lower. CME cash feeder index: 06/09: 154.15, off .76.

LEAN HOGS

Lean hog futures closed on a mixed basis with settlement ranging from 30 points higher to 205 lower. Focused on the summer and early fall months, most of the volume seemed to be pushing prices lower, Both July and August closed below moving average lows with charts now suggesting double tops. Carcass value closed solidly higher with all primals contributing except the butt. Pork cut-out: $93.14, up .69. CME cash lean index for 06/08: 80.02, up .61 (DTN Projected lean index for 06/09: 80.59, up .57). 

TUESDAY'S CASH HOG CALL

Steady to $1 higher. Hog buyers should resume procurement chores in the morning with steady/firm bids.