Friday Closing Livestock Market Summary

GENERAL COMMENTS

The cash cattle trade was generally slow Friday with business limited to scattered sales in parts of the North. Several thousand dressed cattle traded between $188 and $190, steady to $2 higher than Thursday. The national hog base closed off $0.36 compared with the Prior Day settlement ($82-$88.50, weighted average $86.34). From Friday to Friday, livestock futures scored the following changes: Aug LC Off $1.23; Oct LC Off $1.38; Aug FC Off $2.90; Sep FC Off $3.00; Jul LH Up $1.10; Aug LH Off $0.53. Corn futures closed 2 cents higher, supported by forecasts of hot temperatures next week across much of the Midwest. The stock market closed higher with the Dow up 94 and the NASDAQ up 63.

LIVE CATTLE

Futures closed mixed up 20 to off 17 with settlements in a narrow range. Generally speaking, deferred contracts closed somewhat higher than nearbys. Although the board closed well below spot cash, futures did seem to uncover new buying interest this week above 100-day moving averages. Beef cut-outs: lower (choice, $218.84 off $1.21, select $202.51 off $1.25) on light-to-moderate demand and heavy offerings (80 loads of choice cuts, 44 loads of select cuts, 16 loads of trimmings, 21 loads of coarse grinds).

MONDAY'S CASH CATTLE CALL: Steady. Monday's trade will be limited to the distribution of new showlists. We expect the new offering to be steady to somewhat larger. Asking prices are likely to start out around $120-$122 in the South and $190-$192-plus in the North.

FEEDER CATTLE

Futures closed mixed, up 40 to off 45. Nearby contracts were supported somewhat by bull-spreading and the premium status of the cash index. CME cash feeder index: 07/06: $148.19, up $2.22.

LEAN HOGS

Futures closed mostly higher up 57 to off 2. Spot July continues to be supported by bullish fundamentals. The big question remains how much longer ready supplies will tighten and pork demand stay firm. Seasonally, such prospects look good for at least another two to four weeks. Having said that, the August contract appears to be struggling more and more to keep pace with spot July. Pork cut-out: $104.96 (FOB Plant) up $1.12. CME cash lean index for 07/05: $92.40, up $0.47 (DTN Projected lean index for 07/06: $92.46, up $0.06).

MONDAY'S CASH HOG CALL: Steady to $1 higher. Look for cash hog buyers to resume work on Monday with steady to $1 higher bids.