Thursday Closing Livestock Market Summary

GENERAL COMMENTS

Light-to-moderate cash trading surfaced in most feeding states Thursday at lower prices. Live sales in the South were marked at $119, mostly $3 lower than last week. On the other hand, the lion's share of dressed biz in the North took placed at $189, $4-$5 lower. According to the closing report, the national hog base is $1.57 higher ($81.00-$89.50, weighted average $87.12). Corn futures finished generally 3 cents higher, boosted by spillover support from wheat and suggestions the drought in the northwestern Plains may be moving into parts of Nebraska and Oklahoma. The stock market closed lower with the Dow off 168 points and the Nasdaq down by 90.

LIVE CATTLE

Soon-to-expire spot June finished 5 points higher. Yet the balance of the market closed with respectable price progress (i.e., up 87 to 132). Once again, the board seemed to ignoring discouraging noise coming out of the wholesale trade. Furthermore, it was positive see the board build on Wednesday's bounce off last week's lows. Beef cut-outs: sharply lower, off $2.51(select, $210.16) to $2.88 (choice, $226.55) with light-to-moderate demand and heavy offerings (90 loads of choice cuts, 36 loads of select cuts, five loads of trimmings, 22 loads of ground beef).

FRIDAY'S CASH CATTLE CALL:

Steady with Thursday. Late-week business will probably be limited with some feedlots deciding to carry unsold steers and heifers into next week.

FEEDER CATTLE

Feeder issues settled 77 to 217 higher with Sep through May 2018 surging by triple digits. Deferred buying was clearly cheered on by solid progress scored in deferred live cattle. CME cash feeder index: 06/28: $148.70, up $1.84.

LEAN HOGS

Despite the traditional uncertainties surrounding H&P reports, bulls seemed to throw caution to the wind and proceed with the steady program of buying, especially in nearby contracts. Prices settled 32 to 155 higher with spot July setting a new contract high. The June 1 hog inventory tuned out to be generally neutral, fitting reasonably well with trade expectations: total hogs, up 3%; kept for breeding, up 2%; kept for marketing, up 4%. The carcass value stumbled more than a buck lower, pressured off $1.22. CME cash lean index for 06/27: $91.50, up $0.40 (DTN Projected lean index for 06/28: $91.66, up $0.16).

FRIDAY'S CASH HOG CALL

Steady to $1 higher. Look for cash hog buyers to conclude pre-holiday activity with a short round of steady/firm bids.