Thursday Closing Livestock Market Summary

GENERAL COMMENTS

Cash cattle were slow to develop in feedlot trade with light trade developing in the North. Trade was seen at $220 to $221 per cwt dressed basis. This is as much as $4 per cwt higher than last week. Live bids are seen at $135 to $136 per cwt, but no trade has been reported at this point. Asking prices are reported at $140 and higher in live basis and $220 and higher dressed. The Fed Cattle Exchange Auction report Thursday listed a total of 1,396 head, with 334 actually sold, and 607 head listed as unsold, and 455 head listed as PO. The state-by-state breakdown looks like this: KS 577 total head, with 210 head sold at $137.00; NE 315 total head, with 124 head sold at $136.50; TX 455 total head, with zero head sold, 455 head listed as PO; CO no test; IA no test; other states (Oklahoma) 49 total head all unsold. The average price (spot market) is $136.75, compared with last week's average price of $132.17. According to the closing report, the national hog base is $0.23 higher compared with the Prior Day settlement ($72-$79) weighted average $76.53. The corn futures moved higher in light activity. July futures were 1 cent higher Thursday. The Dow Jones Index is 8 points higher with the Nasdaq up 24 points.

LIVE CATTLE

Mixed trade developed across live cattle trade following widespread up-and-down market shifts Thursday ($0.45 Lower to $0.17 higher). The overall lack of direction in the market at the end of the session comes from the inability for traders to stay focused on market direction and buyers or seller activity to spark increased market volume through the end of the week. Prices moved actively higher and lower through the trading session, but were unable to hold either direction in an attempt to close nearly unchanged. Beef cut-outs: mixed, $0.11 higher (select, $220.01) to down $0.32 (choice, $250.32) with light demand and offerings (55 loads of choice cuts, 48 loads of select cuts, eight loads of trimmings, 14 loads of coarse grinds).

FRIDAY'S CASH CATTLE CALL:

Steady to 4 higher. Light trade started to develop in the North at $220 to $221 dressed basis. This is $4 per cwt higher than last week's dressed average price level. Although activity in the South is undeveloped at this point, more trade is likely to be seen in the North also. Trade volume may become more through the day Friday, but could reach into late in the day.

FEEDER CATTLE

Despite trading higher through early morning trade, follow-through pressure stepped into the complex, eroding buyer support across the feeder cattle market (0.67 to 1.02 lower). There may be some additional late-week pressure developing in feeder cattle markets, although the firm cash cattle trade could bring buyers back into the market before the holiday. CME cash feeder index: 6/7: $154.11, up $0.30.

LEAN HOGS

Firm buyer support developed in most lean hog markets, as renewed support focused on continued fundamental market strength ($0.02 lower to $1.12 higher). Strong follow-through support redeveloped through nearby contracts early in the session. This helped to spark increased buyer support in July contracts, moving June and July futures above $82 per cwt. There continues to be additional longer-term market support over the near future based on technical and fundamental buyer activity in the complex. Carcass values bounced sharply higher. Sharp losses in butts and ribs were offset by moderate-to-sharp gains in all other primals. Pork cut-out: $92.54 down $1.48. CME cash lean index for 6/6: $78.80, up $0.60. DTN Projected lean index for 6/7 $79.41, up $0.61. 

FRIDAY'S CASH HOG CALL

Steady to $1 higher. The continued support expected to be seen at the end of the week across the cash hog markets is expected to draw prices higher once again. Friday runs are expected to be at 425,000 head with Saturday levels are expected to near 28,000 head.