Friday Closing Livestock Market Summary

GENERAL COMMENTS

The cash cattle trade was not tested in the late rounds with buyers and sellers apparently satisfied with trade volume generated on Wednesday and Thursday. Showlists next week are expected to be steady to somewhat larger in size. Feedlot managers will be pricing ready cattle in a way that hopefully works to stabilize the late-summer sell-off. The National hog base closed off $2.06 compared with the Prior Day settlement ($69-$75, weighted average $73.34). From Friday to Friday, livestock futures scored the following changes: Aug LC off $3.35; Oct LC off $1.50; Aug FC off $1.27; Sep FC off $2.20; Oct LH off $2.50; Dec LH off $1.15. Corn futures closed about a penny lower, modestly supported by late-week short-covering. The stock market closed lower with the Dow off 76 and the NASDAQ down by 5.

LIVE CATTLE

Futures closed mixed, up 50 to off 75. Friday's action was quite choppy with nearby issues swinging from sharp losses to significant gains, and then back again. Thin trade volume seemed partially to blame for the significant volatility. 2017 contracts closed at their lowest point seen since early April. Despite this week's $5 drop in feedlot sales, nearby live futures still seem determined to lead late-summer cash lower. Beef cutouts: lower (Choice, $194.29 off $1.34, Select $192.50 off $1.70) on light-to-moderate demand and heavy offerings (84 loads of choice cuts, 14 loads of select cuts, 0 loads of trimmings, 25 loads of coarse grinds).

MONDAY'S CASH CATTLE CALL:

Steady to $2 lower. Monday will be typically slow with packers focused exclusively on the collection of new showlists. Our guess is that producers will start out pricing cattle around $112 in the South and $178-$180 in the North.

FEEDER CATTLE

Futures closed mostly higher, up 167 to off 70. Trade volume was very light just before the weekend break. For the week, feeders followed deferred live contracts lower, ignoring the theoretical support of cheapening corn. CME cash feeder index: 08/18: $145.80, up $0.36.

LEAN HOGS

Futures closed mixed, up 82 to off 80. Although spot October tried briefly to climb above 70 this week, supply bears quickly reasserted their pessimism. October and December finished the week well below 100-day moving averages. Furthermore, spot October will start out next week lagging behind the cash index by more than $17. Note that this week's slaughter dropped to 2.33 million head 60,000 head more than last week. Pork cutout: $90.14 (FOB Plant) off $1.83. CME cash lean 08/16: $83.70, off $0.33 (DTN Projected lean index for 08/17: $83.19, off $0.51).

MONDAY'S CASH HOG CALL:

$1-$2 lower. Hog buyers will be on the defensive when trade resumes on Monday mindful of large country supplies and weakening product demand.