Thursday Closing Livestock Market Summary

GENERAL COMMENTS

Sharply higher cash bids sparked moderate-to-active trade volume in most areas of cattle-feeding country. Dressed deals in the North ranged from $215-$217, $7-$8 higher basis Nebraska. Live sales in the South were mostly marked at $136-$137, $4-$6 higher. According to the closing report, the national hog base is $0.23 lower ($67.00-$76.00, weighted average $73.40). Remaining stuck in a narrow trading range, corn futures settled 1-2 cents lower. The Dow and Nasdaq closed at new record levels, settled 135 and 48 higher, respectively.

LIVE CATTLE

Long anticipating sharply lower prices in early summer, cattle futures were forced to scream higher Thursday in the face of sharply higher feedlot sales all over the place. Live contracts settled 142 to 300 higher with the first three months finishing up the 300-point limit. Spot August settled at its highest price level since May 8. Beef cut-outs: mixed, up $0.04 (choice, $245.58) to off $0.96 (select, $217.22) with moderate demand and heavy offerings (91 loads of choice cuts, 60 loads of select cuts, 9 loads of trimmings, 19 loads of coarse grinds).

   

FRIDAY'S CASH CATTLE CALL:

Steady/firm with Thursday's advance. Besides some clean-up trade here and there, business seems to be done for the week.

FEEDER CATTLE

Feeder bulls really took the bit Thursday and ran hard for blue sky. Contracts finished mostly 357 to 450 higher with the first three contracts closing limit up. Spot August closed at its highest level since May 4. CME cash feeder index: 05/31: $147.11, up $1.58.

LEAN HOGS

Lean hogs started the trading day mostly higher, but somewhere along the way was undone by profit-taking and the unwinding of spreads. At the close, prices were mixed with settlements ranging from 45 higher to 100 lower. Given the way nearbys lost to deferreds, some bull-spreaders chose Thursday to take profits. Similarly, hog/cattle spreader also seemed eager to take some money off the table. Carcass value closed moderately higher as higher loins and bellies trumped lower ribs, hams and butts. Pork cut-out: $91.44, up $0.44. CME cash lean index for 05/30: $76.53, up $0.08 (DTN Projected lean index for 05/31: $76.79, up $0.26).

FRIDAY'S CASH HOG CALL

Steady. Hog buyers are likely to resume work in the morning with basically steady bids as they put the finishing touches on fairly ambitious Saturday kill plans (around 220,000 head).