Thursday Closing Livestock Market Summary - Cattle Futures Finally Catch Corrective Bounce

GENERAL COMMENTS

The cash cattle trade was very quiet through the day with business for the week essentially completed at midweek. According to the closing report, the Iowa hog base closed $1.17 lower compared with the prior day settlement ($50-$55, weighted average $53.97). Corn futures closed a penny-plus higher with no particular trading feature evident. The stock market tanked as trade war fears with China escalated. The Dow imploded by 724 points, and the Nasdaq crashed by 178.

LIVE CATTLE

Nothing goes down forever. Live cattle futures finally remembered that truism Thursday, closing significantly higher after a long fortnight of bearish beatings. Prices settled 45 to 160 higher, momentarily lifted by short-covering/profit-taking and technical-buying. Beef cut-outs: significantly higher (choice, $225.21, up .83; select, $218.02, up $1.63) with light-to-moderate demand and moderate offerings (73 loads of choice cuts, 22 loads of select, 13 loads of trimmings, 7 loads of ground beef).

FRIDAY'S CASH CATTLE CALL:

Steady with Wednesday. While scattered clean-up deals are possible on Friday, country business appears to be done for the week.

FEEDER CATTLE:

Feeders bounced higher along with their live counterparts, closing 75 to 205 points in the green. Needless to say, Thursday's dead-cat bounce carried absolutely no technical punch in terms of reversing the downtrend. 03/21 cash index: $139.39, off $1.56.

LEAN HOGS:

Lean hog futures closed significantly lower (i.e., off 32 to 217) with spring and summer contracts taking most of the bearish blast. Prices wobbled through the session thanks to deteriorating fundamentals, technical selling and fears the new tariffs against China could eventually lead to retaliation against U.S. pork. Carcass value closed moderately lower, checked by erosion in all primals except the ham. Pork cut-out: $71.45, off $0.62. CME cash lean 03/20: $63.63, off $0.66 (DTN Projected lean index for 03/21: $63.03, off $0.60).

FRIDAY'S CASH HOG CALL:

Steady to $1 lower. Look for late-week cash activity to maintain the defensive tone seen all week long.