Thursday Closing Livestock Market Summary - Livestock Futures Close Higher With Cattle Contracts Leading the Way

GENERAL COMMENTS

Besides the flotation of a few more bids across the feeding area (e.g., $192 in the North; $120-$121 in the South), the cash cattle market remained close to a standstill through the day. For the most part, asking prices held firm at $195-$200 in the North and $127-$128 in the South. According to the closing report, the national hog base is $0.40 higher ($56-$62, weighted average $61.13). The corn board closed narrowly mixed with neither bulls nor bears inspired by new S&D numbers released Thursday. Equities closed higher with the Dow up 196 points and the Nasdaq advanced by 65.

LIVE CATTLE

While, summer futures continue to trail spot cash by a country mile, Thursday's solid rally may suggest that some discount defenders are getting a little nervous. Spot June cleared 38% retracement of the first quarter sell-off, sticking its best close since March 22. Overall, live issues settled 50 to 185 higher with nearbys generally gaining on deferreds. Beef cut-outs: modestly higher, up $0.11 (choice: $231.07) to $0.19 (select: $209.14) with light-to-moderate demand and offerings (50 loads of choice cuts, 32 loads of select cuts, 15 loads of trimmings, 14 loads of ground beef).

FRIDAY'S CASH CATTLE CALL:

Steady. Buyers and sellers have painted themselves into another Friday corner. We look for moderate trade to surface on Friday sometime between late-morning and early afternoon. Late-week business should be near steady with last week.

FEEDER CATTLE:

Feeders followed the bullish path blazed by live counterparts, closing 37 to 145 higher. August nosed back over its 40-day moving averages but still faces multiple levels of technical resistance. 05/09: $137.93, off $0.07.

LEAN HOGS:

Price progress here was not exactly extraordinary, but it was definitely solid with contracts settling mostly 27 to 75 in the green. Excited somewhat by the rising cash index and improving fundamentals, spot June scored its highest close since April 22. Both July and August managed closes above 40-day moving averages. Carcass value closed moderately higher, supported by better demand for belies, ribs and loins. Pork cut-out: $72.58, up $0.54. CME cash lean index for 05/08: $63.55, up $0.22 (DTN Projected lean index for 05/09: $63.73, up $0.18).

FRIDAY'S CASH HOG CALL:

Steady to $1 higher. Hog buyers are expected to wrap up business on Friday with steady/firm bids in the country.