Monday Closing Livestock Market Update

GENERAL COMMENTS

Action in feedlot country was typically slow as the new week began with packers focusing exclusively on the gathering of new showlists. Ready numbers are generally smaller than last year with only Colorado offering a steady supply. According to the closing report, the national hog base is .02 higher ($82.00-87.50, weighted average $85.82). Corn futures settled 1-2 cents higher thanks to light short-covering. The stock market closed on a mixed basis with the Dow up 14 points and the Nasdaq off 18.

LIVE CATTLE

Live cattle futures briefly opened lower in deference to the negative implications of the June 1 Cattle on Feed report released Friday. But new buying interest quickly surfaced, sparking the best rally seen in weeks. When the smoke cleared, contracts closed generally 220 to 300 higher. Soon-to-be-spot August closed up the limited, landing its best finish since June 13. Most contracts settled above moving average highs for the first time since early June. Beef cut-outs: mixed, up .94 (select, $217.66) to off $1.18 (choice, $238.57) with light to moderate demand and moderate offerings (59 loads of choice cuts, 20 loads of select cuts, 21 loads of trimmings, 14 loads of ground beef).

TUESDAY'S CASH CATTLE CALL:

Steady to $2 higher. Bids and asking prices are likely to remain poorly defined with significant trade volume possibly delayed until the second half of the week.

FEEDER CATTLE

Feeder issues exploded higher with the first three months closing up the 450-point limit. In one fell swoop, the board has gone from discount to the cash index to a substantial premium. On an estimated run of 6,200 head (near even with both a week and year ago), Oklahoma City sold feeder steers and heifers mostly steady to $3 lower. CME cash feeder index: 06/23: 145.84, off 1.25.

LEAN HOGS

For the most part, lean hog contracts settled moderately higher (i.e., up 2 to 55). Only spot July, closing as much as 172 higher (a new contract high), reflected more bullish energy thanks to the premium status of the cash index. Carcass values closed modestly higher as stronger demand for hams and bellies offset lower rib business. Pork cut-out: $101.35, up.20. CME cash lean index for 06/22: 90.17, up .87 (DTN Projected lean index for 06/23: 90.62, up .45). 

TUESDAY'S CASH HOG CALL

Steady. Hog buyers seem set to resume work in the morning with basically steady bids.