Thursday Closing Livestock Market Summary

GENERAL COMMENTS

Light-to-moderate trade volume developed in parts of the Northern tier of cattle feeder country with most dressed deals marked at $190, steady with Wednesday but $2 higher than last week. In the same arena, live business was reported at $120, likewise $2 better than the prior week. According to the closing report, the national hog base is $0.06 lower ($82-$88.50, weighted average $86.78). Corn futures imploded by 15 cents plus Thursday, hammered by timely rains covering the central Midwest and moderating temperatures. The stock market higher with the Dow up 20 points and the Nasdaq in the green by 13.

LIVE CATTLE

Live futures closed on a mixed basis, finishing up 7 to off 45. While the trade found it difficult to build up limit gains scored on Wednesday, it did a fairly good job in defending the newly secured high ground. Beef cut-outs: sharply lower, off $1.47 (select, $197.26) to $2.84 (choice, $209.85) with light-to-moderate demand and heavy offerings (150 loads of choice cuts, 73 loads of select cuts, 5 loads of trimmings, 27 loads of ground beef).

FRIDAY'S CASH CATTLE CALL: Steady/firm with Wednesday and Thursday. Though some clean-up action is possible, we suspect that feedlot cash is essentially done for the week.

FEEDER CATTLE

Contracts settled 85 to 205 higher with the majority of issues advancing by triple digits. The major retreat in the corn market served as buying inspiration here as commercials quickly imagined lower costs of gain. CME cash feeder index: 07/12: $150.74, up $2.02.

LEAN HOGS

Lean futures closed mixed with prices ranging from 77 higher to 85 lower. With spot July set to expire Friday at high noon, August current sits more than $10 below the cash index. It will be interesting to see if there's enough late-summer confidence afoot to spark some kind of nearby rally next week. The carcass value experienced quite a crash with all but the loin primal quoted sharply lower. Pork cut-out: $103.67, off $2.15. CME cash lean index for 07/11: $92.75, up $0.16 (DTN Projected lean index for 07/12: $92.84, up $0.09).

FRIDAY'S CASH HOG CALL: Steady. Between a big drop in the pork cut-out and the proposed scheduling of a relatively small Saturday kill (around 35,000 head), late-week cash bids should be no better than steady.