Monday Closing Livestock Market Update

GENERAL COMMENTS

The cash cattle trade was not tested as packers limited their early week efforts to the collection of new showlists. Generally speaking, the fed offering seems larger in all major feeding states, especially Texas. According to the closing report, the national hog base is $1.31 lower ($73.00-81.75, weighted average $78.72). Corn futures settled nearly 6 cents higher thanks to a lack of selling interest as the trade looks forward to the USDA's first field-based production estimate scheduled for Thursday. The Dow set another new record, closing 25 points higher at 22,118. The Nasdaq finished the day up 32.

LIVE CATTLE

Despite last week's demonstration of cash stability in the country, live contracts launched this week in a state of collapse. Live contracts settled off 110 to 297 with nearby issues once again plunging back toward the bottom end of a $6 range. Last week's low of 111.77 basis spot August represents key support. The October and December contracts closed below the 6-day moving average low as well as the 100-day moving average close. Beef cut-outs: lower, off .31 (select, $197.00) to .89 (choice, $202.72) with light to moderate demand and moderate offerings (49 loads of choice cuts, 22 loads of select cuts, 17 loads of trimmings, 25 loads of ground beef).

TUESDAY'S CASH CATTLE CALL:

Steady to $2 lower. Look for a typically slow Tuesday with bids and asking prices remaining poorly defined.

FEEDER CATTLE

Feeders also crashed big time, off 232 to 375. With the cash index currently $3.50 premium of the board, CME traders seem convinced (at least for today) that futures will soon lead country auctions lower. On an estimated run of 5,500 head (up from 2,782 last week and near even with 5,789 in 2016), Oklahoma City sold feeder steers and heifers steady to $2 higher. Some 600-700 steers were marked up to $4 higher. CME cash feeder index: 08/04: 149.77, off 2.22.

LEAN HOGS

Successfully extending the bounce born late last week, lean futures muscled still higher Monday with fourth-quarter issues leading the charge. October through February managed to settle above 100-day moving averages for the first time since mid-July. Carcass value closed sharply higher with all primals reflecting much better demand. Pork cut-out: $97.56, up $1.79. CME cash lean index for 08/03: 86.69, off .42 (DTN Projected lean index for 08/04: 86.10, off .59).

TUESDAY'S CASH HOG CALL:

Steady to $1 lower. Hog buyers should stay on the defensive when cash business resumes in the morning.