Wednesday Closing Livestock Market Summary

GENERAL COMMENTS

Light to moderate cash activity surfaced in most feeding areas as some producers reluctantly accepted another round of sharply lower bids. Live biz in the South was marked at $122-123, $8 to $9 lower than last week. Dressed deals in the North ranged from $196 to $198, $9 to $10 lower than last week's weighted average basis Nebraska. According to the closing report, the national hog base is .07 higher ($82.00-89.00, weighted average $86.03). Corn futures settled a penny plus lower, pressured late by spillover selling from the bean market. The stock market closed on a mixed basis, up 45 points on the Nasdaq and off 57 on the Dow. `

LIVE CATTLE

Live cattle futures tried hard to put the car back on the road Wednesday with would-be bulls hoping to capitalize on Tuesday's reversal. But while a decent rally seemed to be gaining legs at one point, in the end buying could not be sustained with contracts sliding back into the ditch. Final settlements were mostly 15 to 85 lower. Indeed, country selling interest seemed to increase once the board ran out of gas. Beef cut-outs: significantly lower, off .98 (select, $218.90) to $1.57 (choice, $245.42) with light to moderate demand and moderate offerings (64 loads of choice cuts, 45 loads of select cuts, 9 loads of trimmings, 23 loads of ground beef).

THURSDAY'S CASH CATTLE CALL:

Steady/weak with midweek losses. Assuming that trade volume totals generated at midweek were no larger than light to moderate, further trade should develop on Thursday and/or Friday.

FEEDER CATTLE

Feeders closed moderately higher, mostly up 30 to 72. The premium of the cash index and commercial buying interest were both supportive factors. CME cash feeder index: 06/20: 148.07 off .17.

LEAN HOGS

The lean hog trade has become business in two separate worlds. Nearby contracts are strongly supported by the ongoing development of impressive fundamentals. For example, spot July closed 107 points higher, setting a new contract high for the third consecutive session. Yet success in back contracts was no better than mixed with settlements ranging from 20 higher to 25 lower. Carcass market remains on absolute fire, surging another $2 plus higher with all primals making substantial contributions except the butt. Pork cut-out: $101.09, up $2.24. CME cash lean index for 06/19: 86.55, up 1.23. (DTN Projected lean index for 06/20: 88.03, up 1.48). 

THURSDAY'S CASH HOG CALL

Steady-$1 higher. Look for hog buyers to resume procurement chores Thursday with steady/firm bids.