Tuesday Closing Livestock Market Summary - Meat Futures Settle With Mixed Prices

GENERAL COMMENTS

The cash cattle trade was very slow through the day with just a few scattered bids noted in Kansas and parts of the North. Some showlists were priced around $120 on a live basis. According to the closing report, the national hog base is $0.56 higher ($42-$47.50, weighted average $46.27). The corn trade closed a penny plus lower, slightly pressured after USDA increased its estimate of U.S. ending corn stocks from 2.127 billion bushels to 2.182 bb. The stock market scored a strong recovery thanks in part to a further lowering of trade worries by Chinese officials. The Dow jumped 428 points on the close with the Nasdaq up by 143.

LIVE CATTLE

Live futures settled on a mixed basis, up 77 to off 45. The front end seems to be trapped for the moment between last week's highs and lows (e.g., $114.45 and $110.10 basis April). Some traders are cautiously waiting to see if constructive fundamentals can soon find the first rung of the ladder. Beef cut-outs: significantly lower, off $1.53 (choice: $213.51) to $1.81 (select: $201.33) with light-to-moderate demand and moderate-to-heavy offerings (77 loads of choice cuts, 59 loads of select cuts, 9 loads of trimmings, 18 loads of ground beef).

WEDNESDAY'S CASH CATTLE CALL:

Steady to $2 lower. Short-bought packers should start to show more buying interest at midweek, yet board stability continues to be an early spring wild card.

FEEDER CATTLE:

The action here was extremely slow with issues finishing narrowly mixed, up 37 to off 42. Spot April is now virtually even with the cash index. CME cash feeder index: 04/ 09: $134.81, up $0.32.

LEAN HOGS:

Scheduled to expire at the end of the week, spot April closed 60 points higher, exactly par with the latest cash index calculation. Generally speaking, the rest of the complex settled 22 to 82 lower tied to large supply worries. For the second consecutive day, the carcass value held near steady with stronger loins and picnics essentially offsetting lower bellies. Pork cut-out: $66.57, off $0.05. CME cash lean index for 04/06: $54.02, off $0.73 (DTN Projected lean index for 04/09: $53.50, off $0.52).

WEDNESDAY'S CASH HOG CALL:

Steady to $1. Not to get too carried away, but it looks like fundamentals are slowly becoming more constructive.