Friday Closing Livestock Market Summary - Cattle Futures Conclude Choppy Session With Significant Gains

GENERAL COMMENTS

The Northern tier of cattle-feeding country turned active as feedlot managers responded to another round of higher packer bids. For example, live deals in Nebraska ranged from $122-$124, $0.50 to $2.50 higher. Some dressed business in Nebraska and Iowa was reported as high as $193 to $195, $3 to $5 higher. The National hog base closed off $0.51 compared with the Prior Day settlement ($50-$61.50, weighted average $57.65). From Friday to Friday, livestock futures scored the following changes: Apr LC up $2.80; Jun LC up $0.07; May FC off $1.05; Aug FC off $0.60; Jun LH off $0.10; Jul LH up $0.45. Corn futures closed a nickel plus lower pressured by warming temperatures and ideas of significant planting progress in the weeks ahead. The stock market closed lower with the Dow off 201 and the Nasdaq down by 91.

LIVE CATTLE

Futures closed moderately to sharply higher, up 22 to 155. As traders waited for the development of both cash news and on-feed data, the live market saw major swings in both directions through the session. But when the dust settled, most contracts scored significant progress with spot April closing at its highest point since March 20. Summer months continued to lose ground on both April and spot cash. Deferred traders remain fearful of large summer beef supply and inadequate demand. Currently, the July contract is trading more than $15 below spot April, stuck in a range between 102 and 106. The April 1 on-feed report turned out to be well anticipated with all three categories coming in close to trade expectations: on feed 107%; placed in March 91%, and marketed in March 96%. Beef cutouts: firm to higher (choice, $211.98 up $0.64, select $200.13 up $1.65) on light-to-moderate demand and moderate-to-heavy offerings (63 loads of choice cuts, 48 loads of select cuts, 09 loads of trimmings, 22 loads of coarse grinds).

MONDAY'S CASH CATTLE CALL:

Steady to $2 higher. Monday will be typically quiet with activity limited to the distribution of new showlists. We expect the offering to be steady to somewhat larger.

FEEDER CATTLE:

Futures closed mostly higher, up 90 to off 65. Feeders firmed along with their live counterparts. Additionally, the market may have gained some support from the weak corn trade. The August contract managed to close slightly above 38% retracement of the first-quarter price drop. But August faces significant resistance near $146.50, 50% retracement of that same move. CME cash feeder index: 04/19: $136.56, off $0.56.

LEAN HOGS:

Futures closed moderately lower, off 10-67. Action here was rather lackluster as traders slowly took profits and liquidated some long positions. Summer charts continue to look promising, but seem stuck under 100-day moving averages at this time. Pork cutout: $67.91 (FOB Plant), off $0.51. CME cash lean 04/18: $55.97, up $0.92 (DTN Projected lean index for 04/19: $56.80, up $0.83.

MONDAY'S CASH HOG CALL:

Steady to $1 higher. Hog buyers are likely to start out on Monday with greater caution thanks to the way processing margins have narrowed over the last several weeks.