Monday Closing Livestock Market Update - Beef Futures Settle Mostly Higher Thanks to Stronger Cash News

GENERAL COMMENTS

Activity in feedlot country at the top of the week was limited to the distribution of new showlists. Ready numbers appear to be mixed, larger in the North and smaller in the South. Overall, the late-month offering looks somewhat smaller .09 higher ($62.00-70.00), weighted average $69.23). The corn market finished generally 2 cents higher, supported by hot and dry conditions anticipated for Argentina. The stock market closed lower with the Dow off 177 points and the Nasdaq down by 39.

LIVE CATTLE

While live issues closed mostly higher (up 2 to 110), price action certainly started the trade day better than it ended. Only spot Feb finished with significant progress, supported by the major improvement in packer spending that surfaced late Friday. The lackluster tone of deferred contracts suggested skepticism relative to the sustainability of early year bullishness. Beef cut-outs: sharply higher, up $2.20 (choice: $209.11) to $2.30 (select: $204.13) with moderate to good demand and moderate offerings (45 loads of choice cuts, 17 loads of select cuts, 7 loads of trimmings, 14 loads of ground beef).

TUESDAY'S CASH CATTLE CALL:

Steady to $2 higher. Look for a typically slow Tuesday with neither bids nor asking prices well defined.

FEEDER CATTLE:

Feeders popped higher on the opening, but soon faded into a lackluster trading range. At the close, contracts settled 35 higher to 15 lower. On an estimated run of 8,000 head (off from 9,868 last week and 10,581 in 2017), Oklahoma City sold feeder steers mostly $1 to $4 higher. On a light test, their female mates were marked $3 to $7 higher. Steer and heifer calves sold $1 to $2 higher. CME cash feeder index: 01/26: 147.50, up .44.

LEAN HOGS:

Lean futures closed on a mixed basis, up 22 to off 27. Monday's slaughter totaled 466,000 head, the most aggressive Monday seen since 2018 began. Carcass value held about steady with higher bellies and butts checked by lower loins and hams. Pork cut-out: $82.81, up .03. CME cash lean index for 01/25: 73.77, unchanged (DTN Projected lean index for 01/26: 73.83, up .06). 

TUESDAY'S CASH HOG CALL:

Steady to $1 higher. Opening bids in the morning should be steady/firm, perhaps supported somewhat by Monday's light country run.