Wednesday Closing Livestock Market Summary - Cattle Futures Rebound Linked to Cash and Product Optimism

GENERAL COMMENTS

Cattle buyers and sellers pretty much kept to themselves Wednesday, perhaps intuitively knowing that they didn't share much in common regarding ideas of price this early in the game. A few packers left token calling cards with $119 bids. Some asking prices were suggested around $125 on a live basis, but firming futures may boost bullish expectations even more through the second half of the trading week. According to the closing report, the national hog base is $0.28 higher ($52-$59, weighted average $58.35). Corn futures surged 5-6 cents higher, supported by noncommercial buying and another friendly swing in wheat prices. Equities closed mixed with the Dow up 59 and the Nasdaq off 3.

LIVE CATTLE

Live contracts quickly rebounded from Tuesday's correction, closing 27 to 82 higher. Yet the summer months still refuse to close the sprawling gap with spot April (which expires next Monday) and feedlot cash. Beef cut-outs: significantly higher, up $0.88 (choice: $218.53) to $1.04 (select: $203.15) with moderate demand offerings (71 loads of choice cuts, 37 loads of select cuts, 13 loads of trimmings, 21 loads of ground beef).

THURSDAY'S CASH CATTLE CALL:

Steady to $2 higher. We should start to see a few more bids thrown on the table, but bullish feedlot psychology is such that significant trade volume could easily be postponed until Friday.

FEEDER CATTLE:

Unbothered by the decent bounce is corn futures, feeder issues advanced a bit ahead of their live counterparts. Prices here settled 35 to 120 higher. August closed just 15 points below its 100-day moving average. 04/24: $138.21, up $0.13.

LEAN HOGS:

Lean contracts closed on a mixed basis with settlements ranging from 110 higher to 10 lower. You would have to risk eyestrain to find much corrective action vis-a-vis Tuesday's prices slide. July and August nudged back above 40-day moving averages, but that's about it. Carcass value closed moderately higher with all major primals quoted higher except the loin. Pork cut-out: $68.49, up $0.41. CME cash lean index for 04/23: $59, up 1.12 (DTN Projected lean index for 04/24: $60.44, up $1.44).

THURSDAY'S CASH HOG CALL:

Steady to $1 higher. Look for hog buyers to resume business in the morning with steady/firm bids.