Thursday Closing Livestock Market Summary - Cattle Futures Rock With Triple-Digit Gains

GENERAL COMMENTS

Higher packer bids triggered a decent test of the cash cattle market, especially in the South. A moderate number of steers and heifers were marked at $126, roughly $3 higher than last week. Business in the North seemed more touch-and-go with light trade reported in a very wide price range (e.g., $190-$200 dressed). According to the closing report, the national hog base is $0.15 lower ($52-$59.10, weighted average $58.89). Corn futures firmed by 3 cents plus on the close, supported by dry South American weather. The stock market closed mixed with the Dow up 5 points and the Nasdaq off 12.

LIVE CATTLE

Live contracts surged 90 to 167 higher thanks to stronger cash sales in Kansas and Texas, as well as aggressive short-covering. Spot June managed to push back over its 40-day moving average, but couldn't surpass Monday's high of $107.82. Major chart resistance sits at $109.22 (50% of the first-quarter break) and then at $111.50. Beef cut-outs: higher, up $0.26 (select: $209.17) to $1.29 (choice: $209.17) with moderate-to-fairly-good demand and light-to-moderate offerings (41 loads of choice cuts, 31 loads of select cuts, 6 loads of trimmings, 21 loads of ground beef).

FRIDAY'S CASH CATTLE CALL:

Steady with Thursday's firmness. While business in the South could be done for the week, Northern buyers and sellers face a number of late-week marketing chores.

FEEDER CATTLE:

Following the lead of live counterparts and ignoring further firmness in the corn trade, feeder futures surged 147 to 217 higher. Currently, spot May is running about 270 points above the cash index. 05/02: $138.11, off $1.02.

LEAN HOGS:

Lightly traded spot May closed 17 higher. But the rest of this market settled steady to 32 points lower. For the moment, lean futures seem to be high-centered with neither side wishing to push in a direction for more than a day or two. The pork carcass quickly surrendered most of Wednesday's rally, pressured by loins, bellies and hams. Pork cut-out: $69.39, off $0.86. CME cash lean index for 05/01: $62.66, up $0.21 (DTN Projected lean index for 05/02: $62.93, up $0.27).

FRIDAY'S CASH HOG CALL:

Steady. Expect hog buyers to bid generally steady in the morning. While Thursday's country run seemed light, the same can be said of Saturday kill plans (probably no more than 42,000 head).