Thursday Closing Livestock Market Summary - Cattle Futures Throw in Towel on Week's Attempted Rally

GENERAL COMMENTS

While some packer inquiry surfaced early in parts of the northern tier of cattle-feeding country, buying interest seemed to stall once live and feeder futures stumbled into triple-digit losses. According to the closing report, the national hog base is $0.32 lower ($53-$60.50, weighted average $58.80). Corn futures settled 1-2 cents lower, pressured somewhat by winter wheat weakness and a lack of buying interest. The stock market closed mixed with the Dow up 115 points and the Nasdaq off 15.

LIVE CATTLE

After Tuesday's strong cash showing in feedlot country, it looked as though the discounted board was on the verge on a turnaround. Yet that was not to be, a lesson clearly driven home Thursday by sharply lower live closes. Contracts settled off 95 to 122 thanks to the resumption of long liquidation and technical-selling. Beef cut-outs: mixed, up $0.88 (choice: $224.99) to off $0.70 (select: $216.31) with light-to-moderate demand and light offerings (58 loads of choice cuts, 24 loads of select cuts, 14 loads of trimmings, 12 loads of ground beef).

FRIDAY'S CASH CATTLE CALL:

Steady/firm with Tuesday. Look for at least light trade volume to develop in parts of the North on Friday with prices near steady with the early week cash market.

FEEDER CATTLE:

Feeder futures really took it on the chin Thursday, closing as much as 142 to 230 points lower. The weak tone of deferred live contracts together with the inherent uncertainty of new-crop corn seemed to be at least two tough hammers. CME cash feeder index: 03/14: $142.81, off $0.44.

LEAN HOGS:

Once again, spot April lean stuck out like a sore thumb of weakness, pressured 115 points lower thanks to the steady erosion of the cash index. The rest of the complex closed solidly higher, up 10 to 95. Summer issues seemed most successful in attracting buying interest. Carcass value closed moderately higher, supported by better demand for loins, hams and bellies. Pork cut-out: $72.80, up $0.51. CME cash lean index for 03/13: $66.38, off $0.29 (DTN Projected lean index for 03/14: $65.93, off $0.45).

FRIDAY'S CASH HOG CALL:

Steady. Late-week cash hog bids are expected to be about steady as packers finish covering Saturday kill needs as well as early week starters.