Tuesday Closing Livestock Market Summary

GENERAL COMMENTS

Activity in cattle feeding country was very limited with just a small handful of scattered sales reported in parts of the North (i.e., $115-$116 live; $184-$186 dressed). According to the closing report, the national hog base is $1.05 higher ($72-$82, weighted average $79.78). Corn futures closed 2-3 cents lower as traders remained cautious with the WASDE report waiting in the late-week wings. The stock market closed lower with the Dow off 33 points and the Nasdaq down by 13.

LIVE CATTLE

At the conclusion of a fairly choppy session, live futures closed mostly lower (i.e., off 27 to 52). The board tried to bounce near midsession, but short-covering interest soon ran out of gas. In the end, moderate losses seem tied to follow-through selling and further long liquidation. Beef cut-outs: lower, off $0.14 (select, $196.86) to $0.47 (choice, $202.25) with light-to-moderate demand and offerings (87 loads of choice cuts, 29 loads of select cuts, 10 loads of trimmings, 23 loads of ground beef).

WEDNESDAY'S CASH CATTLE CALL:

Steady to $2 lower. Buying interest should be more evident at midweek, and the same goes for concrete asking prices.

FEEDER CATTLE

About the best you could say about action here Tuesday was that selling interest certainly slowed from Monday's bloody ambush. Bears tried to push their advantage early. But short-covering and profit-taking eventually surfaced, allowing most issues to settle nearly 100 points above the lows of the day. Still, most contracts did record further losses, closing 10 to 72 lower. CME cash feeder index: 08/07: $149.37, off $0.40.

LEAN HOGS

Market action in Tuesday's lean hog trade seemed to lack consistent rhyme or reason. Contracts settled unevenly mixed, ranging 37 higher to 37 lower. The carcass value collapsed more than $2 Tuesday, especially pressured by a $9.25 drop in the belly primal. Pork cut-out: $95.43, off $2.13. CME cash lean index for 08/04: $86.10, off $0.59 (DTN Projected lean index for 08/07: $85.76, off $0.34.

WEDNESDAY'S CASH HOG CALL:

Steady to $1 lower. Look for hog buyers to open on the defensive in the morning, mindful of Tuesday's bigger country run and the drop in carcass value.