Tuesday Closing Livestock Market Summary

GENERAL COMMENTS

Aside from a few starter bids in parts of the North, feedlot country remains quiet through the day with few sellers even bothering to voice what they might take for ready cattle. We're assuming that asking prices will start out around $120 in the South and $190 in the North. According to the closing report, the national hog base is $0.08 higher ($74-$83, weighted average $79.87). Corn futures ended 8 cents plus lower, weighted by spillover selling from the bean trade and a generally wet seven-day forecast. The stock market closed higher with the Dow up 72 points and the Nasdaq better by 14.

LIVE CATTLE

Although live contracts traded in the green for most of the session, price progress was relatively modest until the last hour of business. Prices settled 80 to 120 points higher, primarily thanks to late short-covering and profit-taking. Beef cut-outs: mixed, up $0.45 (select, $198.29) to off $0.34 (choice, $205.41) with light-to-moderate demand and offerings (71 loads of choice cuts, 27 loads of select cuts, 14 loads of trimmings, 8 loads of ground beef).

WEDNESDAY'S CASH CATTLE CALL:

Steady to $2 lower. Look for bids and asking prices to at least take on better definition at midweek. Significant trade volume could easily be delayed until Thursday or Friday.

FEEDER CATTLE

Feeders closed sharply higher (i.e., up 227 to 300), supported by aggressive short-covering, the premium status of the cash index and struggling corn futures. Unlike the live charts, feeders managed to score some technical credibility. Specifically, nearby issues managed to attract buyers near 100-day moving averages and close above 40-day moving averages. CME cash feeder index: 07/31: $150.79, up $0.38.

LEAN HOGS

Lean hog issues slumped generally 50 to 162 lower. Oct through Apr lost ground to both spot August and the far deferreds. December plunged below psychological supported at 60 and closed at its lowest price level since Dec. 6. Carcass value closed lower with most of the depreciation tied to processing cuts. Pork cut-out: $98.82, off $0.84. CME cash lean index for 07/28: $88.10, off $0.65 (DTN Projected lean index for 07/31: $87.70, off $0.40).

WEDNESDAY'S CASH HOG CALL:

Steady to $1 lower. Hog buyers should resume procurement efforts in the morning with steady/weak bids.