Tuesday Closing Livestock Market Summary - Cattle Futures Settle Mostly in the Red, but Well Above Session Lows

GENERAL COMMENTS

Light to moderate cattle trading surfaced in most areas of the feeding country with live sales generally ranging steady to $1 higher (i.e., $126-to-$128). Dressed business was quite limited with most producers passing bids of $204-to-$205. According to the closing report, the national hog base is .92 lower ($54.00-to-$62.00, weighted average $59.58). Corn futures settled nearly a penny higher, supported somewhat by further dry news from Argentina. The stock market closed lower with the Dow off 171 points and the Nasdaq off by 77.

LIVE CATTLE

As we've said before, it's not how you start, it's how you finished. Not that closing live prices were bold enough to make the bullish marquee (no better than mixed, up 35 to off 47), but settlements proved much better than the triple-digit losses seen around midsession. Indeed, spot August and June managed to finish 105-to-115 above the lows of the day. Such impressive fence mending seemed to be sparked when higher feedlot cash sales were reported around midmorning. Beef cut-outs: lower, off .17 (choice: $223.73) to .74 (select: $216.75) with light to moderate demand and offerings (55 loads of choice cuts, 32 loads of select cuts, eight loads of trimmings, 23 loads of ground beef).

WEDNESDAY'S CASH CATTLE CALL:

Steady/firm with Tuesday. More buyers may step to the plate Wednesday if they're convinced the Tuesday's firm tone in the country was no fluke.

FEEDER CATTLE:

Feeder issues closed 27 to 102 lower, pressured by further long liquidation and technical selling. But as is the case of live futures, things could have been worse here as well. Nearly all contracts closed more than 100 points above session lows. Spot March and August dipped to the lowest levels seen since January 25 before attracting some short covering interest. CME cash feeder index: 03/12: 143.17, off .17.

LEAN HOGS:

Lean hog futures closed moderately higher for the most part with the help of short covering and oversold charts. Though daily gains have become somewhat of a rarity here, nothing of technical significance was scored. About the only positive case to be made for spot April is that is does seem to be respecting a range between 66.50 and 69.50. Carcass value closed modestly lower higher fresh cuts and bellies largely offsetting weaker hams and ribs. Pork cut-out: $74.88, up $1.45. CME cash lean index for 03/09: 67.05, off .47 (DTN Projected lean index for 03/12: 66.67, off .38).

WEDNESDAY'S CASH HOG CALL:

Steady to $1 lower. Hog buyers don't seem to be having much trouble moving live inventory this week. Look for another round of steady to $1 lower bids at midweek.