Thursday Closing Livestock Market Summary - Meat Futures Bounce Moderately Higher

GENERAL COMMENTS

The fed cattle trade was very light with a few scattered live deals reported in Texas at $106, and scattered dressed trade turned in at $170 basis Iowa and Nebraska. According to the closing report, the national hog base is $1.28 lower ($65-$70, weighted average $67.89). The corn market closed fractionally higher in lackluster trade volume. Major stock indices closed mostly lower with the Dow off 28 points and the Nasdaq down by 7.

LIVE CATTLE

Live futures closed mostly 30 to 92 points higher, supported by short-covering and efforts to correct oversold charts. While not much can be said in terms of technical progress Thursday, October and December did seem to generate better buying interest below their 8-day moving low averages. Some bulls are cautiously optimistic that the market is building new lateral trading ranges that will eventually serve as reliable bottoms. Beef cut-outs: moderately lower, off $0.58 (choice, $191.75) to $0.81 (select, $188.66) with light-to-moderate demand and moderate offerings (75 loads of choice cuts, 30 loads of select cuts, 27 loads of trimmings, 25 loads of ground beef).

FRIDAY'S CASH CATTLE CALL:

Steady/weak with Wednesday's decline. Light-to-moderate trade volume is still possible late in the week, though practical price ranges have probably been established.

FEEDER CATTLE

Feeder issues for the most part closed 27 to 70 higher. Only spot August finished modestly in the red (i.e., $141.60, off 2 points). Imploding feedlot margins are making commercials increasingly cautious buyers in this arena. CME cash feeder index: 08/23: $143.42, up $0.04.

LEAN HOGS

Lean issues settled moderately higher, up 5 points to 57. The token progress seemed nothing more than temporary profit-taking near the tail-end of another tough week. Spot October finally attracted some short-covering after dipping to a new four-month lows. Some technical buying may have been prompted by oversold oscillators, but little more. Carcass value closed moderately lower, pressured by further losses in the belly (off $6.41) and rib (off $2.27) primals. Pork cut-out: $87.18, off $0.75. CME cash lean index for 08/22: $80.49, off $1.04 (DTN Projected lean index for 08/23: $79.40, off $1.09).

FRIDAY'S CASH HOG CALL:

$1 lower. Look for hog buyers to remain on the defensive when country business resumes in the morning.