Friday Closing Livestock Market Summary - Cattle Futures Close Mostly Higher, Supported by Greater Packer Spending in the Country

GENERAL COMMENTS

Moderate cattle trading developed in several states with greater packer spending especially noted in Nebraska and Kansas. For example, a decent number of live sales in Nebraska were marked at $122, roughly $6 lower than last week's weighted average. At about the same time, better business surfaced in Kansas at $120, $2 to $3 higher than last week's weighted average in that state. The National hog base closed up $0.59 compared with the Prior Day settlement ($44-$53, weighted average $50.06). From Friday to Friday, livestock futures scored the following changes: Apr LC up $4.33; Jun LC up $1.33; May FC up $4.75; Aug FC up $3.65; Apr LH up $1.70; May LH up $5.23. Corn futures settled 2 to 3 cents lower, apparently oblivious to any planting worries despite forecasts of a major snowstorm this weekend for the Western Corn Belt, as well as cool temperatures and wet conditions for next week over a broader area. The stock market closed lower with the Dow off 122 points and the Nasdaq down 33.

LIVE CATTLE

Futures closed mostly higher, up 80 to off 15. Supported by the first signs of decent cash strength seen since mid-March, spot April closed at its highest level since March 22. Nevertheless, it will still start next week $5 to $6 below the best of country business reported Friday. Beef cutouts: steady on choice and lower on select (choice $212.61, up $0.13; select $199.91, off $0.76) on light-to-moderate demand and offerings (63 loads of choice cuts, 22 loads of select cuts, 07 loads of trimmings, 15 loads of coarse grinds).

MONDAY'S CASH CATTLE CALL:

Steady to $1 higher. Monday's action will be typically slow as buyers and sellers focus on the distribution of new showlists. We expect ready numbers to total about steady with this week.

FEEDER CATTLE:

Futures closed mostly higher, up 70 to off 30. Feeder issues were once again supported by firming action in deferred live futures. Note that spot April closed nearly $3 above the cash index. This market may have also gained some support by the lackluster tone of the corn market. CME cash feeder index: 04/12: $136.42, up $0.66.

LEAN HOGS:

Futures closed mostly higher, up 40 to off 47. Spot April expired Friday at 53.82, somewhat above the latest projected cash index. Although May will technically become the spot month on Monday, traders will probably focus more on the performance of the June contract since May tends to be so lightly traded. June will start out on Monday nearly $24 above the April expiration. While such a seasonal premium is not all that unusual, the early summer contract will probably make traders more than a little nervous as they watch for improving supply and demand fundamentals. Pork cutout: $66.33 (FOB Plant) up $0.27. CME cash lean 04/11: $52.97, off $0.05 (DTN Projected lean index for 04/12: $53.23, up $0.26.

MONDAY'S CASH HOG CALL:

Steady to $1 higher. Hog buyers are expected to resume work on Monday with steady/firm bids. It's that time of year when market hog numbers should begin to consistently grow smaller.