Thursday Closing Livestock Market Summary - Lean Hog Futures Pull Back Prior to H&P Release

GENERAL COMMENTS

Light-to-moderate cash cattle business surfaced in Kansas and Texas with live sales marked at $108, steady with last week. On the other hand, limited activity in the North involved a few scattered dressed deals at $172, $1-$2 higher than last week's weighted average basis Nebraska. According to the closing report, the national hog base is $0.03 lower ($43-$48.50, weighted average $47.44). Corn futures drifted 1-2 cents lower on the close tied to lackluster positioning ahead of Friday's Sept. 1 Stocks Report. The stock market closed higher with the Dow up 40 points and the Nasdaq near unchanged.

LIVE CATTLE

Waiting for a definitive cash market verdict, live contracts closed cautiously mixed, up 40 points to off 25. Large charts gaps created on Monday remain tough overhead resistance. Indeed, bulls may need a large serving of encouraging cash fundamentals from some corner in order to cut through this technical ceiling. Beef cut-outs: mixed, up $1.11 (choice: $196.41) to off $0.80 (select: $189.11) with light-to-moderate demand and light offerings (49 loads of choice cuts, 32 loads of select cuts, 17 loads of trimmings, 30 loads of ground beef).

FRIDAY'S CASH CATTLE CALL:

Steady to $2 higher. While cash business in the South could be essentially done for the week, Northern buyers and sellers must come to terms sometime on Friday. Look for light-to-moderate business to develop in the area Friday between late morning and midafternoon.

FEEDER CATTLE:

Feeder issues closed mixed in listless trade volume with prices settling up 45 to off 35. Nothing of technical significant occurred through the slow trading session. CME cash feeder index: 09/27: $152.08, off $0.35.

LEAN HOGS:

With the exception of a 15-point gain for spot August, lean hog futures closed significantly lower, off 35 to 137. Taking cover ahead of the quarterly snout count, Dec-April fell by triple digits, recoiling from overhead resistance near 40-day moving average. The H&P report turned out to be generally well anticipated: total hogs, 102%; kept for breeding, 101%; kept for marketing, 103%. Between a front-loaded weight breakdown of market hogs and only guarded increases in farrowing intentions, bear-spreading could be a popular reaction on Friday. Carcass value closed modestly lower as softer demand for loins, ribs, and processing items overshadowed strength in picnics and butts. Pork cut-out: $72.64, up $0.15. CME cash lean index for 09/26: $56.25, off $0.73 (DTN Projected lean index for 09/27: $55.54, off $0.71).

FRIDAY'S CASH HOG CALL:

Steady to $1 lower. Opening bids in the morning should be steady/weak as packer complete procurement chore supplying yet another record large weekly rounds of laughter.