Wednesday Closing Livestock Market Summary - For the Most Part, Lean Hog Futures Close Moderately Higher

GENERAL COMMENTS

Feedlot country was only lightly tested at midweek, but scattered business in parts of the North certainly had a steady/firm undertone (i.e., $117-$118). According to the closing report, the national hog base is $0.95 higher ($43-$49, weighted average $47.50). Corn futures closed several cents lower in slow volume with a general lack of buying interest. The stock market closed lower with the Dow 218 points lower and the Nasdaq down by 25.

LIVE CATTLE

Live contracts closed on a mixed basis, ranging from 70 higher to 52 lower. Spot April received most of the buying interest, perhaps tied to signs of firming packer bids in the country. Beef cut-outs: moderately lower, off $0.44 (choice: $213.07) to $0.72 (select: $200.61) with light-to-moderate demand and moderate offerings (68 loads of choice cuts, 34 loads of select cuts, 9 loads of trimmings, 25 loads of ground beef).

THURSDAY'S CASH CATTLE CALL:

Steady to $2 higher. Cattle-buying interest should start to improve, though greater feedlot resolve could easily delay significant business until Friday. Asking prices are likely to be restated around $120 live in the South and $190 plus dressed in the North.

FEEDER CATTLE:

The feeder market witnessed a lackluster trading affair Wednesday with prices closing narrowly mixed (i.e., up 45 to off 7). CME cash feeder index: 04/10: $134.85, up $0.04.

LEAN HOGS:

Scheduled to expire Friday noon, spot April stayed close to the cash index by closing 20 points lower. Yet the balance of the market was pretty well supported by short-covering, an easing in trade war rhetoric and the expectations of improving fundamentals just around the next corner or two. Carcass value closed moderately lower, pressured by softer demand for all primals (especially fresh cuts) except the belly. Pork cut-out: $65.86, off $0.71. CME cash lean index for 04/06: $53.50, off $0.5 (DTN Projected lean index for 04/09: $53.02, off $0.48).

THURSDAY'S CASH HOG CALL:

Steady to $1 higher. Thursday's opening cash trade should continue to sport a firm undertone as market hog numbers slowly tighten.