Thursday Closing Livestock Market Summary

GENERAL COMMENTS

The country trade was generally quiet with just a few Northern steers and heifers marked steady with midweek firmness (i.e., $118 live; $188 dressed). According to the closing report, the national hog base is $0.23 lower ($73-$82.50, weighted average $79.67). The corn market settled a penny plus lower Thursday, modestly pressed by rain in the forecast for the Western Corn Belt and spillover selling from the bean trade. The stock market closed mixed with the Dow up 9 points and the Nasdaq off 22.

LIVE CATTLE

After spending a good amount of time on both sides of unchanged, live contracts closed moderately higher (i.e., up 2 to 75). At the conclusion of a choppy session, contracts were supported by follow-through buying and the premium status of cash business. While fading more than 50 points from the session high, December did manage to stick a close slightly above the 40-day moving average, Beef cut-outs: modestly higher, up $0.10 (choice, $205.16) to $0.36 (select, $197.78) with moderate demand and light-to-moderate offerings (66 loads of choice cuts, 15 loads of select cuts, 9 loads of trimmings, 14 loads of ground beef).

FRIDAY'S CASH CATTLE CALL:

Steady/firm with Wednesday. Look for light-to-moderate business to finally develop in several states Friday as packers move to cover short-term slaughter needs.

FEEDER CATTLE

Feeder paper settled moderately higher (i.e., up 7 to 60). Most contracts closed just below bearish chart gaps created early last week. A burst of buying energy around midsession caused spot August to momentarily surge ahead of the cash index. But when the smoke cleared, August settled at $150.65, still 22 short of the index. CME cash feeder index: 08/02: $150.87, up $0.44.

LEAN HOGS

The lean hog trade experienced one of those "could-have-been-worse" sessions. Although futures closed no better than mixed (i.e., up 40 to off 72), late short-covering allowed most contracts to settle 100 points plus off session lows. Carcass value closed modestly lower with higher loins and bellies largely offsetting losses in hams, ribs and picnics. Pork cut-out: $96.75, off $0.11. CME cash lean index for 08/01: $87.35, off $0.35 (DTN Projected lean index for 08/02: $87.11, off $0.24).

FRIDAY'S CASH HOG CALL:

Steady to $1 lower. Expect hog buyers to be using steady/weak bids in the morning as packers wrap up their slaughter needs for the week.