Thursday Closing Livestock Market Summary

GENERAL COMMENTS

The cash cattle trade Thursday was a non-event with buyers apparently content with the trade volume generated on Wednesday. According to the closing report, the national hog base is $0.48 lower ($75.00-$80.50, weighted average $78.50). The new supply and demand table for corn turned out to be bearish (e.g., 14.153 billion bushes estimated for new production with a BPA yield of 169-lower than 2016, but a good deal above trade guesses). The grain market quickly turned defensive with Sep-Mar corn futures settling 15 cents lower.

The stock market put in a tough day with investors bothered by U.S./North Korean relations. The Dow closed 201 points lower with the Dow off by 135.

LIVE CATTLE

Plunging to 6. Given the way selling seemed to accelerate after the release of the bearish corn data, some viewed the greater likelihood of cheap feed as a license/incentive for greater meat production. Beef cut-outs: lower, off $0.42 (select, $196.19) to $1.03 (choice, $200.63) with light to moderate demand and moderate offerings(81 loads of choice cuts, 27 loads of select cuts, 6 loads of trimmings, 30 loads of ground beef).

FRIDAY'S CASH CATTLE CALL:

Steady/weak with Wednesday. Look for another cash sleeper on Friday with neither buyers nor sellers likely to be geared for business.

FEEDER CATTLE

Feeder futures settled mostly 20 to 85 lower, pressured by spillover selling from the trade and technical defensiveness.

Losses would have no doubt been more substantial had it not been for the friendly implications of the big sell-off in corn prices. CME cash feeder index: 08/09: 147.93, off 1.55.

LEAN HOGS

Hog paper represented the Rock of Gibraltar compared with imploding live cattle futures. Prices here closed no worse than narrowly mixed, up 32 points to off 32. The extremely depth of fourth quarter contracts is working to discourage further selling interest (at least for the time being). Carcass value closed marginally higher with strength in loins, ribs and bellies barely overshadowing weakness in picnics and hams. Pork cut-out: $95.17, up $0.11. CME cash lean index for 08/08: 85.62, off .14 (DTN Projected lean index for 08/09: 85.50, off .12).

FRIDAY'S CASH HOG CALL:

Steady to $1 lower. Expect hog buyers to remain on the defensive in the morning as they complete their late week procurement chores.