Wednesday Closing Livestock Market Summary - Meat Futures Land Midweek Recovery

GENERAL COMMENTS

The cash cattle trade was very quiet at midweek following moderate biz reported on Tuesday. A few scattered sales were reported in parts of the North ($128/$207). According to the closing report, the national hog base is $0.52 lower ($54-$60, weighted average $59.06). Corn futures closed 2-3 cents lower, pressured by sharp losses in the bean trade. The stock market closed lower on further trade war worries. The Dow closed 248 points lower with the Nasdaq off 14.

LIVE CATTLE

Live futures closed higher Wednesday, but only spot April seems worthy of attention. The lead contract settled 110 points higher, supported by the premium status of feedlot sales. But the final scorecard for the rest of the complex was really rather modest (i.e., steady to up 45). Traders would have received greater applause had the curtain drop an hour or so earlier. Yet nervousness through the last half of the session caused prices to fall 100-200 points below early session highs. Specifically, spot April came away with quite the bloody nose after running into chart resistance around $124-$124.50. Beef cut-outs: higher, up $0.26 (select: $217.01) to $0.38 (choice: $224.11) with light-to-moderate demand and offerings (62 loads of choice cuts, 25 loads of select cuts, 15 loads of trimmings, 21 loads of ground beef).

THURSDAY'S CASH CATTLE CALL:

Steady/firm with Tuesday. Business in the South could be done for the week, but the North will have to trade more cattle either Thursday or Friday.

FEEDER CATTLE:

Most feeder contracts finished 32 to 75 higher with just a few far deferreds closing in the red. Like their live counterparts, feeders just couldn't find a way to hold the high ground, closing significantly below early highs. CME cash feeder index: 03/13: $143.25, up $0.08.

LEAN HOGS:

Checked by the steady erosion of the cash index, spot April lean closed 85 points lower. Yet the balance of the complex enjoyed solid buying interest throughout the session, especially the summer contracts. After confirming support around 77, Jun-Aug may be ready to anticipate tighter supplies to develop this spring and through the early summer. Carcass value crashed and burned Wednesday, losing more than $2 thanks to sharply lower bellies (off $6.46) and loins (off $4.56). Pork cut-out: $72.29, off $2.34. CME cash lean index for 03/12: $66.67, off $0.38 (DTN Projected lean index for 03/13: $66.38, off $0.29).

THURSDAY'S CASH HOG CALL:

Steady to $1 lower. Look for another round of lower bids in the morning, perhaps underscored by the big break in carcass value.