Monday Closing Livestock Market Update

GENERAL COMMENTS

It was a typical "show and tell" session in feedlot country Monday with activity limited to the assessment of new showlists. This week's fed offering looks generally larger, especially in Kansas and Nebraska. According to the closing report, the national hog base is .81 higher ($80.00-87.00, weighted average $85.44). The corn market closed more than 8 cents lower, checked by a forecast for good growing weather. The stock market closed higher with the Dow up 144 points and the Nasdaq better by 87.

LIVE CATTLE

Live issues closed sharply lower, off 130 to 207, pressured by a tough combination of long liquidation and technical selling. Perhaps fearful of growing fed supplies and the dog days of summer ahead, would be bottom-pickers are proving difficult to recruit at this time. June and August landed their poorest finish since April 26. Beef cut-outs: mixed, up $1.56 (select, $221.56) to $off .38 (choice, $249.46) with light to moderate demand and offerings (47 loads of choice cuts, 22 loads of select cuts, 13 loads of trimmings, 11 loads of ground beef).

TUESDAY'S CASH CATTLE CALL:

Steady-$2 lower. Assuming that both bids and asking prices remain poorly defined Tuesday, we look for a typically slow session with significant trade volume probably postponed until Wednesday or Thursday.

FEEDER CATTLE

Feeders followed the bearish lead of their live counterparts and then some. Contracts settled 112 to 292 lower. Spot August closed at its lowest point since April 25. On an estimated run of 6,500 head (down from 7,594 last week but up from 4,978i in 2016), Oklahoma City sold feeder steers and heifers $1-4 lower. CME cash feeder index: 06/16: 150.18 off .89.

LEAN HOGS

For the most part, lean hog contracts exploded with triple-digit gains. The first six contracts advanced by 117 to 260 points. Spot July set a new contract high, and most issues settled above 10-day moving average highs. Carcass value closed solidly higher with only the loin primal losing ground. Pork cut-out: $96.57, up .94. CME cash lean index for 06/15: 84.06, up 1.13 (DTN Projected lean index for 06/16: 85.32, up 1.26). 

TUESDAY'S CASH HOG CALL

$1 to $2 higher. Look for another round of firm cash bids in the morning as well-margined packers work with the reality of tightening market hog numbers.